ConDig (01-Feb–21).  Construction spending in the US edged up 1% in December to a seasonally adjusted annual rate $1.49 trillion compared with $1.46 trillion the month prior as a healthy rise in residential construction was offset by drops in every private category, according to latest figures from the Commerce Department.

The gains were limited to residential construction, which surged 3.1% for December and 20.7% compared with the same period a year earlier. 

But private and public nonresidential spending fell 0.8% from November and 4.8% from a year earlier­.

Private nonresidential construction spending fell 1.7% from November to December and 9.8% from December 2019. All 11 private nonresidential categories in the government report declined from a year earlier.

The largest private nonresidential segment, power construction, fell 10.8% year-over-year despite a gain of 0.6% from November to December. Among the other large private nonresidential project types, commercial construction—comprising retail, warehouse and farm structures—dipped 1.4% year-over-year and 2.8% for the month. Manufacturing construction tumbled 17.6% from a year earlier and 5.6% for the month.

“Private nonresidential construction has declined for six months in a row, and the slide is accelerating,” said Ken Simonson, chief economist at the Associated General Contractors of America. 

“While some categories of public construction have held up so far, state and local budget problems are likely to drive a downturn in public project starts in the next few months.”

Private residential construction spending increased for the seventh-straight month, jumping 20.7% year-over-year percent and 3.1% in December. Single-family homebuilding surged 23.8% compared with December 2019 and 5.8% for the month. Multifamily construction spending climbed 17.8% for the year and inched up 0.1% for the month.

Overall spending for December was also up 5.7% on the same month last year.