Construction spending during February 2024 was estimated at a seasonally adjusted annual rate of $2,091.5 billion, 0.3 percent below the downward revised January estimate of $2,096.9 billion. The February figure is 10.7 percent above the February 2023 estimate of $1,889.6 billion. Nearly all of the slowdowns came from decreased activity in the public market segment. During the first two months of this year, construction spending amounted to $298.1 billion, 11.9 percent above the $266.5 billion for the same period in 2023.   READ MORE ....

The CIRT Sentiment Index shows strong optimism going into the first quarter of 2024. The overall index score rose to 64.9 from 58.9 in the fourth quarter of 2023. The Design Index also increased sharply to 74.3 from 62.7.  CIRT members recorded much stronger optimism across index compo­nents, especially with respect to: the U.S. economy, the economy where members operate, members’ construction businesses, and the nonresidential sector.  In addition to overall and specific market expectations and trends, the Sentiment Index Report also asks about some current issue of interest, focused on: their backlogs, capacity and hiring goals, women’s participation in their work­forces, top risks and adjustments to their strategic plans for 2024.

For valuable details, see the latest CIRT 1stQ/24 Sentiment Index Report. 

Construction spending during January 2024 was estimated at a seasonally adjusted annual rate of $2,102.4 billion, 0.2 percent below the slightly upward revised December estimate of $2,105.8 billion. However, the January figure is still 11.7 percent above the January 2023 estimate of $1,882.2 billion; with nearly all of the month vs. month slippage occurring in the public sector.  READ MORE

The U.S. Census Bureau announced the “put in place” spending during December 2023 was estimated at a “seasonally adjusted” annual rate of $2,096.0 billion, 0.9 percent above the upward revised November estimate of $2,078.3 billion. The December figure is a whopping 13.9 percent above the December 2022 estimate of $1,840.9 billion; some of which can be accounted for by the impact of inflation on the dollar amounts recorded in 2023.

By comparison, the overall value of construction in 2023 was $1,978.7 billion (also impacted by inflation), or a year-over-year 7.0 percent above the $1,848.7 billion spent in 2022.  READ MORE..

The U.S. Census Bureau announced the “put in place” construction spending during November 2023 was estimated at a seasonally adjusted annual rate of $2,050.1 billion, 0.4 percent above the upward revised October estimate of $2,042.5 billion. The November figure is a noticeable strong 11.3 percent above the November 2022 estimate of $1,842.2 billion. During the first eleven months of this year, construction spending amounted to $1,817.1 billion, a steady 6.2 percent above the $1,711.1 billion for the same period in 2022.   READ MORE

The U.S. Census Bureau announced the “put in place” construction spending during October 2023 was estimated at a seasonally adjusted annual rate of $2,027.1 billion, 0.6 tenths of a percent above the upward revised September estimate of $2,014.7 billion. The October figure is 10.7 percent above the October 2022 estimate of $1,830.5 billion. During the first ten months of this year, construction spending amounted to $1,646.0 billion, a healthy 5.6 percent above the $1,559.1 billion for the same period in 2022. 

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Construction spending during September 2023 was estimated at a seasonally adjusted annual rate of $1,996.5 billion, 0.4 percent above the upward revised August estimate of $1,988.3 billion. The September figure is a healthy 8.7 percent above the September 2022 estimate of $1,836.9 billion. Of note, nonresidential spending saw a large increase over previous month’s levels. During the first nine months of this year, construction spending amounted to $1,463.5 billion, 4.6 percent above the $1,398.9 billion for the same period in 2022.

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Construction spending during August 2023 was estimated at a seasonally adjusted annual rate of $1,983.5 billion, 0.5 percent above the revised July estimate of $1,973.7 billion. The August figure is 7.4 percent above the August 2022 estimate of $1,847.3 billion. During the first eight months of this year, construction spending amounted to $1,284.7 billion, 4.2 percent above the $1,233.4 billion for the same period in 2022.

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Construction spending during July 2023 was estimated at a seasonally adjusted annual rate of $1,972.6 billion, 0.7 percent above the upwardly revised June estimate of $1,958.9 billion. The July figure is a healthy 5.5 percent above the July 2022 estimate of $1,869.3 billion. During the first seven months of this year, construction spending amounted to $1,101.5 billion, 3.7 percent above the $1,062.1 billion for the same period in 2022.

Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $1,548.9 billion, 1.0 percent above the revised June estimate of $1,533.7 billion. Residential construction was at a seasonally adjusted annual rate of $879.0 billion in July, 1.4 percent above the revised June estimate of $866.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $670.0 billion in July, 0.5 percent above the revised June estimate of $666.9 billion.   READ MORE....

The Department of Labor (DOL) has published its long-anticipated rewrite of the pay threshold for salary employees to be exempted from overtime requirements.  Notwithstanding numerous concerns and even legal precedents from court cases the last time a massive jump in the salary level was proposed, the Biden Administration rule would increase the salary threshold to $1,059 per week, or $55,000 a year. [That’s a 55% increase in one step over the current levels of $684 a week, or $35,600 a year, for workers to qualify for overtime pay if they work over 40+ hours a week]. The rule is expected to affect an estimated 3.6 million workers.  However, in a move that will likely be the center-piece of legal challenges, the proposed rule seeks automatic raises to the threshold every three years going forward.  CIRT along with a coalition of design/construction organizations has raised serious concerns regarding the large increase proposed by this rulemaking, not the least of which is the impact it will have on further raising costs during an inflationary time.  Moreover, for younger employees this one size fits all increased threshold salary (which may be higher than entry level salaries for some parts of the country) can undermine their professional development.

For more details, see DOL release Notice of Proposed Rulemaking altering the overtime altering the overtime pay regulations under the Fair Labor Standards Act. Comments are due in 60-days or October 30, 2023.