DECEMBER 1997 CONSTRUCTION AT $611.8 BILLION ANNUAL RATE Construction put in place during December 1997 was estimated at a seasonally adjusted annual rate of $611.8 billion, nearly the same (+/-5 percent) as the revised November estimate of $611.3 billion, according to the U.S. Commerce Department's Bureau of the Census. The December figure represents a 6 percent increase over December 1996. In constant (1992) dollars, the December annual rate was $511.4 billion, nearly the same (+/-5 percent) as the revised estimate of $510.8 billion for November. The value of construction put in place for the year 1997 was $600.7 billion, 6 percent above the $568.6 billion put in place in 1996. In constant (1992) dollars, the value in 1997 was $507.5 billion, 3 percent above the 1996 figure of $493.6 billion. Table 5 shows preliminary estimates for 1997 by type of construction. PRIVATE CONSTRUCTION Spending on new residential housing units was at a seasonally adjusted annual rate of $193.5 billion in December, 2 (+/-2) percent above the revised November estimate of $190.1 billion. Nonresidential building construction was at a rate of $159.1 billion, nearly the same (+/-3 percent) as the revised November estimate of $159.8 billion. The value of new residential housing units put in place in 1997 was $185.5 billion, 3 percent above the $179.4 billion in 1996. Nonresidential building construction in 1997 was $161.2 billion, 8 percent above the 1996 figure of $149.4 billion. PUBLIC CONSTRUCTION In December, the estimated seasonally adjusted annual rate of public construction put in place was $138.9 billion, 2 (+/-5) percent below the revised November estimate of $141.9 billion. Public construction in 1997 was $138.8 billion, 6 percent above the $131.5 billion for 1996. Spending on highways and streets increased 9 percent. January 1998 data will be released on March 2, 1998 at 10:00 AM EST. Questions regarding these data may be directed to George Roff, Kathy McDonald or Joe Huesman, Construction Expenditures Branch, Manufacturing and Construction Division, telephone (301) 457-1605. EXPLANATORY NOTES In interpreting changes in the statistics in this release, note that month- to-month changes in seasonally adjusted statistics often show movements which may be irregular. It may take 2 months to establish an underlying trend for total construction and as long as 6 months for specific categories of construction. The statistics in this release are estimated from several sources and surveys and are subject to sampling variability as well as nonsampling errors including bias and variance from response, nonreporting, and undercoverage. Estimates of the standard errors are provided in Table 4 for selected types of construction. Whenever a statement such as "2 (+/-3) percent above" appears in the text, this indicates the range (-1 to +5 percent) in which the actual percent change is likely to have occurred. All ranges given are 90 percent confidence intervals. If the range contains zero, it is uncertain whether there was an increase or decrease; that is, the change was not statistically significant. For any comparison cited without a confidence interval, the change is statistically significant. Statistics for the current month are preliminary estimates subject to revision in following months as additional data become available. The average absolute percent changes from preliminary estimate to first revision for the major seasonally adjusted components are as follows: total construction, 0.5 percent; private construction, 0.6 percent; private residential construction, 0.7 percent; private nonresidential construction, 1.3 percent; and public construction, 1.3 percent. More detailed data will appear in Current Construction Reports, C30/97-12, to be issued later this month. A discussion of sources and reliability of the data appears in Current Construction Reports, C30/97-5. --------------------------------------------------------------------------- TABLE 1. VALUE OF CONSTRUCTION PUT IN PLACE IN THE UNITED STATES, SEASONALLY ADJUSTED ANNUAL RATE (BILLIONS OF DOLLARS) Type of construction Dec(p) Nov(r) Oct(r) Sep Aug Dec 1997 1997 1997 1997 1997 1996 Current dollars Total construction........ 611.8 611.3 611.8 605.7 603.7 579.1 Private construction(1)......... 472.9 469.4 469.6 468.8 465.2 447.0 Residential buildings(2)...... 271.9 268.1 265.7 263.8 260.0 247.9 New housing units........... 193.5 190.1 189.9 186.7 183.8 179.1 1 unit ................... 169.6 166.9 165.3 163.7 161.7 159.3 2 units or more........... 23.9 23.2 24.7 22.9 22.1 19.8 Nonresidential buildings...... 159.1 159.8 162.0 163.3 163.4 157.4 Industrial.................. 28.1 29.4 30.0 30.7 31.5 30.8 Office...................... 32.8 33.4 34.2 32.6 32.6 29.5 Hotels, motels.............. 12.6 12.8 12.9 13.3 13.1 13.8 Other commercial............ 48.4 46.2 47.2 47.9 49.0 48.9 Religious................... 6.3 6.5 6.2 6.1 5.5 5.1 Educational................. 9.1 9.2 8.9 8.8 8.3 7.6 Hospital and institutional.. 13.0 13.7 13.8 14.7 14.0 13.6 Miscellaneous buildings..... 8.8 8.5 8.8 9.2 9.4 8.0 Telecommunications............ (NA) 12.1 12.5 11.8 11.4 14.6 All other private............. 1.8 2.2 2.4 2.2 2.5 2.2 Public construction............. 138.9 141.9 142.2 136.9 138.4 132.1 Housing and redevelopment..... 4.3 5.6 6.1 4.7 4.6 4.4 Industrial.................... 0.8 0.8 0.8 0.9 1.0 1.1 Educational................... 25.9 23.7 25.6 23.5 24.3 24.3 Hospital...................... 4.2 4.8 5.7 5.2 5.0 5.1 Other public buildings........ 24.5 25.4 25.8 24.8 24.3 24.7 Highways and streets.......... 42.4 44.4 39.4 40.1 41.7 39.6 Military facilities........... 2.3 2.7 2.8 2.5 2.8 2.2 Conservation and development.. 5.9 5.3 4.9 6.2 5.5 5.2 Sewer systems................. 9.7 9.7 9.9 10.0 9.7 9.7 Water supply facilities....... 5.9 6.2 6.0 6.2 5.9 5.9 Miscellaneous public.......... 13.0 13.4 15.2 12.8 13.8 9.8 1992 dollars Total construction........ 511.4 510.8 512.5 507.5 507.8 496.7 Private construction(1)......... 394.2 391.1 392.3 391.9 390.6 382.1 Residential buildings(2)...... 225.1 221.9 220.3 219.3 217.4 210.1 New housing units........... 160.1 157.3 157.5 155.2 153.7 151.8 1 unit ................... 140.4 138.2 137.0 136.1 135.2 135.0 2 units or more........... 19.7 19.2 20.4 19.1 18.5 16.8 Nonresidential buildings...... 133.1 133.5 135.8 136.6 137.2 135.7 Industrial.................. 23.5 24.6 25.1 25.7 26.4 26.5 Office...................... 27.5 27.9 28.7 27.3 27.3 25.5 Hotels, motels.............. 10.5 10.7 10.8 11.2 11.0 11.9 Other commercial............ 40.5 38.6 39.6 40.1 41.1 42.1 Religious................... 5.3 5.4 5.2 5.1 4.6 4.4 Educational................. 7.6 7.7 7.4 7.3 7.0 6.6 Hospital and institutional.. 10.9 11.5 11.6 12.3 11.8 11.8 Miscellaneous buildings..... 7.3 7.1 7.3 7.7 7.9 6.9 Telecommunications............ (NA) 10.4 10.7 10.1 9.8 12.7 All other private............. 1.5 1.9 2.1 1.9 2.2 1.9 Public construction............. 117.2 119.7 120.3 115.7 117.1 114.5 Housing and redevelopment..... 3.5 4.6 5.0 3.9 3.9 3.8 Industrial.................... 0.7 0.7 0.7 0.7 0.8 0.9 Educational................... 21.6 19.8 21.4 19.7 20.4 21.0 Hospital...................... 3.5 4.0 4.8 4.3 4.2 4.4 Other public buildings........ 20.5 21.2 21.7 20.8 20.4 21.3 Highways and streets.......... 36.0 37.7 33.5 34.1 35.4 34.5 Military facilities........... 1.9 2.3 2.4 2.1 2.3 1.9 Conservation and development.. 5.0 4.5 4.2 5.3 4.7 4.6 Sewer systems................. 8.3 8.2 8.5 8.6 8.3 8.5 Water supply facilities....... 5.0 5.3 5.2 5.3 5.0 5.0 Miscellaneous public.......... 11.1 11.4 13.0 10.9 11.7 8.6 (NA) Not available. (p) Preliminary. (r) Revised. (1) Includes the following categories of private construction not shown separately: residential improvements, railroads, electric light and power, gas, petroleum pipelines, and farm nonresidential. (2) Includes improvements. --------------------------------------------------------------------------- TABLE 2. VALUE OF CONSTRUCTION PUT IN PLACE IN THE UNITED STATES, NOT SEASONALLY ADJUSTED IN CURRENT DOLLARS (BILLIONS OF DOLLARS) Type of construction Dec(p) Nov(r) Oct(r) Sep Aug Dec 1997 1997 1997 1997 1997 1996 Total construction........ 46.6 52.4 56.8 57.4 57.6 44.1 Private construction(1)......... 36.5 40.5 43.0 43.1 43.3 34.6 Residential buildings(2)...... 20.1 23.3 24.7 24.7 25.1 18.3 New housing units........... 14.5 16.8 17.6 17.6 17.4 13.4 1 unit ................... 12.6 14.8 15.4 15.6 15.4 11.8 2 units or more........... 1.9 2.0 2.2 2.0 2.0 1.6 Nonresidential buildings...... 13.0 13.7 14.5 14.7 14.6 12.9 Industrial.................. 2.5 2.6 2.7 2.7 2.7 2.7 Office...................... 2.7 2.8 3.0 2.9 2.9 2.4 Hotels, motels.............. 1.0 1.1 1.1 1.1 1.1 1.1 Other commercial............ 3.8 4.0 4.5 4.5 4.6 3.9 Religious................... 0.5 0.6 0.6 0.6 0.5 0.4 Educational................. 0.7 0.7 0.7 0.8 0.8 0.5 Hospital and institutional.. 1.1 1.2 1.2 1.3 1.2 1.1 Miscellaneous buildings..... 0.7 0.7 0.8 0.8 0.8 0.6 Telecommunications............ (NA) 1.0 1.2 1.1 1.0 1.3 All other private............. 0.1 0.2 0.2 0.2 0.2 0.2 Public construction............. 10.1 11.9 13.7 14.2 14.2 9.5 Housing and redevelopment..... 0.4 0.5 0.5 0.5 0.4 0.4 Industrial.................... 0.1 0.1 0.1 0.1 0.1 0.1 Educational................... 1.9 1.9 2.2 2.2 2.6 1.8 Hospital...................... 0.4 0.4 0.5 0.5 0.4 0.4 Other public buildings........ 2.0 2.2 2.3 2.3 2.1 2.0 Highways and streets.......... 2.6 3.7 4.6 4.7 5.1 2.4 Military facilities........... 0.2 0.2 0.2 0.3 0.2 0.2 Conservation and development.. 0.5 0.4 0.4 0.8 0.5 0.4 Sewer systems................. 0.7 0.9 1.0 1.0 0.9 0.7 Water supply facilities....... 0.5 0.6 0.6 0.6 0.5 0.5 Miscellaneous public.......... 1.0 1.1 1.4 1.4 1.4 0.7 (NA) Not available. (p) Preliminary. (r) Revised. (1) Includes the following categories of private construction not shown separately: residential improvements, railroads, electric light and power, gas, petroleum pipelines, and farm nonresidential. (2) Includes improvements. --------------------------------------------------------------------------- TABLE 3. BUREAU OF THE CENSUS COMPOSITE FIXED- WEIGHTED (1992 WEIGHTS) PRICE INDEX AND IMPLICIT PRICE DEFLATOR (1992=100) FIXED-WEIGHTED INDEX IMPLICIT PRICE DEFLATOR 1995 1996 1997 1995 1996 1997 Jan 111.7 113.6 116.9 111.6 113.8 116.5 Feb 111.7 113.8 116.8 111.7 113.9 116.2 Mar 111.7 113.8 117.2 111.7 114.1 117.1 Apr 111.8 113.7 117.4 111.9 114.0 117.5 May 112.1 114.1 118.0 112.1 114.3 118.0 Jun 112.6 114.5 117.9 112.5 114.8 118.3 Jul 112.6 115.2 117.9 112.6 115.5 118.5 Aug 112.6 115.5 118.4 112.7 115.7 118.9 Sep 113.0 116.0 119.0 113.1 116.1 119.3 Oct 113.3 116.3 (r)119.3 113.4 116.2 (r)119.4 Nov 113.2 116.4 (r)119.9 113.4 116.3 (r)119.7 Dec 113.3 116.7 (p)120.0 113.5 116.6 (p)119.6 Annual 112.5 115.0 (p)118.2 112.6 115.2 (p)118.4 (p) Preliminary. (r) Revised. --------------------------------------------------------------------------- TABLE 4. RELATIVE STANDARD ERRORS AND COEFFICIENTS FOR STANDARD ERRORS OF CHANGES Relative standard error(%) Coefficient for Monthly Annual month-to-month Type of construction estimate estimate change (k) Total construction... 2 1 .03 Private construction........... 3 1 .04 Residential buildings........ 5 2 .06 New housing units.......... 2 1 .01 1 unit................... 2 2 .01 2 units or more.......... 4 3 .03 Nonresidential buildings..... 2 1 .02 Industrial................. 3 2 .04 Office..................... 4 2 .05 Hotels, motels............. 7 5 .09 Other commercial........... 5 2 .06 Religious.................. 9 5 .12 Educational................ 7 5 .10 Hospital and institutional. 6 5 .07 Miscellaneous buildings.... 7 4 .09 Public construction............ 2 1 .03 Housing and redevelopment.... 8 4 .11 Industrial................... (NA) (NA) (NA) Educational.................. 3 2 .04 Hospital..................... 6 4 .08 Other public buildings....... 3 2 .04 Highways and streets......... 4 2 .05 Military facilities.......... (NA) (NA) (NA) Conservation and development. 4 2 .06 Sewer systems................ 6 3 .08 Water supply facilities...... 8 3 .11 Miscellaneous public......... 8 4 .11 Note: All statistics are based upon 1996 data. The coefficient (k) for the month-to-month change is applicable to change from the previous month and change from the same month a year ago. --------------------------------------------------------------------------- TABLE 5. ANNUAL VALUE OF CONSTRUCTION PUT IN PLACE IN THE UNITED STATES IN CURRENT DOLLARS AND 1992 DOLLARS VALUE (In millions of dollars) CURRENT 1992 DOLLARS DOLLARS Type of construction 1997(p) 1996 1997(p) 1996 Total construction........ 600,692 568,585 507,515 493,587 Private construction(1)......... 461,911 437,079 389,584 378,150 Residential buildings(2)...... 260,160 247,177 218,191 212,069 New housing units........... 185,452 179,448 155,550 153,965 1 unit ................... 162,724 159,124 136,482 136,516 2 units or more........... 22,728 20,324 19,068 17,449 Nonresidential buildings...... 161,182 149,376 136,367 130,394 Industrial.................. 30,600 32,069 25,895 28,003 Office...................... 31,905 27,609 26,992 24,099 Hotels, motels.............. 12,991 11,758 10,996 10,263 Other commercial............ 48,719 47,319 41,215 41,301 Religious................... 5,857 4,539 4,951 3,961 Educational................. 8,275 6,638 6,995 5,790 Hospital and institutional.. 13,848 11,982 11,721 10,460 Miscellaneous buildings..... 8,987 7,462 7,603 6,516 Telecommunications............ (NA) 11,960 (NA) 10,420 All other private............. 2,136 2,381 1,826 2,109 Public construction............. 138,782 131,506 117,930 115,437 Housing and redevelopment..... 4,833 4,522 4,053 3,881 Industrial.................... 1,001 1,392 848 1,216 Educational................... 24,744 23,064 20,927 20,131 Hospital...................... 5,012 4,558 4,242 3,981 Other public buildings........ 24,436 23,148 20,673 20,207 Highways and streets.......... 41,200 37,774 35,081 33,297 Military facilities........... 2,550 2,534 2,166 2,225 Conservation and development.. 5,509 5,909 4,722 5,244 Sewer systems................. 9,928 10,207 8,506 9,060 Water supply facilities....... 6,096 5,887 5,196 5,121 Miscellaneous public.......... 13,475 12,510 11,516 11,075 (NA) Not available. (p) Preliminary. (r) Revised. (1) Includes the following categories of private construction not shown separately: residential improvements, railroads, electric light and power, gas, petroleum pipelines, and farm nonresidential. (2) Includes improvements. Questions regarding these data may be directed to George Roff, Construction Expenditures Branch, Telephone 301-457-1605. ---------------------------------------------------------------------------