The value of construction put in place totaled $1.047 trillion at a seasonally adjusted annual rate in February, the Census Bureau reported today. The total was the 13th straight monthly record and marked a gain of 0.4% from the downwardly revised total for January and 10% from February 2004. For the first two months of 2005 compared to January-February 2004, the overall increase of 10% was well balanced among private residential, +13%, private nonresidential, +8%, and public, +6%. There were large increases for several private nonresidential subcategories: manufacturing, +32%, communication, +30%, lodging, +26%, and amusement & recreation, +14%. There were moderate increases in commercial, +8%, health care, +7%, and office, +6%, but power continued to slump, down -7%. The two largest public subcategories, educational and highway & street, rose 6% and 17%, respectively. These figures are not adjusted for inflation.
Last week, the Bureau of Labor Statistics (BLS) reported that the producer price index for construction materials and components rose 9.9% from February 2004 to February 2005. That index appears likely to go up again in March. Today the Institute for Supply Management reported that manufacturing purchasing executives listed price increases for a range of construction inputs from February to March: aluminum, copper, diesel fuel, freight charges, petroleum-based products, steel, and wood, although steel was listed by some as having dropped in price. Steel products were listed in short supply.