Market Intelligence Update – April 2024

Recently, the US Census released the results of its monthly Value of Construction Put in Place Survey. The survey provides estimates of the total dollar value of construction work done in the U.S. This data includes design and construction spending for public and private projects.

The seasonally adjusted annual rate of $2.1 trillion for February 2024 represents a monthly decline of -0.3%. This is the second month in a row with a negative growth rate, and the first time we have had consecutive monthly declines in total construction spending since October 2022.

 

The latest release shows a slowing in total construction growth, while also highlighting a rebound in the residential construction market. The residential market was the only market in addition to transportation to post a month over month increase.

 

 

With respect to year over year growth in individual markets, manufacturing continues to be a top area for design & construction spending with total year to date (YTD) spending of $34.2b.  Highway and streets and the educational sector are also top markets with double digital YTD growth.

The sectors with the lowest levels of growth are all sensitive to interest rate levels and reflect the impact borrowing costs have had on commercial, office and other real estate development.