Construction spending rose in December to a 6-year high of $982 billion as public construction for the year increased for the first time since 2009, according to an analysis by the Associated General Contractors of America.
“For the first time in nearly a decade there was growth in all 3 major construction segments-public, private nonresidential and residential,” said Ken Simonson, the association’s chief economist. “If the president and Congress can work out a way to pay for long-term investments in our aging infrastructure, there is a good chance this pattern will repeat in 2015.”
Construction spending in December totaled $982 billion at a seasonally adjusted annual rate, 0.4% higher than in November, 2.2% higher than in December 2013, and the highest monthly figure since December 2008, Simonson noted. The full year total of $961 billion was up 5.6% from 2013 and was the highest full year amount since 2008.
Private residential spending in December climbed 0.3 percent from November but slid 4% from a year earlier, while private nonresidential spending slipped 0.2% for the month but rose 5.3 percent year-over-year. Public construction spending increased 1.1% from November and 6.7% from December 2013. For the full year, private residential spending rose 4.1%, private nonresidential spending climbed 11%, and public spending grew 1.8%.
This past week, US shredded scrap dropped 5.4% on the weekly Construction MMI®, landing at $318.00 per short ton as the week’s biggest mover. Chinese H-beam steel weakened by 4.2% to land at CNY 2,290 ($365.73) per metric ton. The price of Chinese rebar fell 2.7% over the past week to CNY 2,480 ($396.08) per metric ton. This was the fourth week in a row of declining prices. At CNY 970.00 ($154.92) per dry metric ton, the Chinese low price of 62% Australian iron ore fines remained essentially flat.
European 1050 aluminum rose 4.7% over the past week to EUR 2,617 ($2,968) per metric ton. The price of Chinese aluminum bar rose 1.3% to CNY 12,920 ($2,063) per metric ton after falling 0.2% during the previous week.
The weekly US Midwest bar fuel surcharge fell 2.4% over the past week to $0.31 per mile. This was the third week in a row of declining prices. The weekly US Rocky Mountain bar fuel surcharge fell 1.8% over the past week to $0.31 per mile. This was the third week in a row of declining prices. The weekly US Gulf Coast bar fuel surcharge fell 1.1% over the past week to $0.31 per mile. This was the third week in a row of declining prices.
The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends. For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.