Construction Spending

Private Construction Spending numbers were recently released.

Non-Residential private spending is off over 10% since 2008/9.  It is near lows met during the early 2000's slow down.  Non-Residential spending never exploded as much as residential during the Boom as is quite evident on the chart.  Non-Residential could bottom near 1150 during 2012.
Residential spending has been bouncing along the bottom and is at mid 1990 levels.  Residential spending has dropped over 25% from the peak.  I would expect residential spending to increase from here.  Single family construction won't be the impetus.  There is still too many excess existing residences to spur a whole lot on new home construction, however, builders have whittled their inventories down to bare bones.  While single family construction may not add to total residential spending, it won't be the drag that it has been.  Multi-Family construction will be where the increase shows up.  Tight apartment vacancies have spurred new multi-family starts.  This will add to total residential numbers later this year and into 2012.
Not shown on the above chart (which is from Calculated Risk) is governmental spending.  With the Build America Bonds program completed 12/31/2010, I wouldn't anticipate many new government sponsored construction projects starting (they are already started).  Government sponsored construction has kept many contractors busy during the slowdown.  Currently, the idea of additional government stimulus seems dubious at best.  One of the key questions facing the construction industry is whether or not private construction can pick up the slack.  I imagine the answer will be quite evident by the end of the year.