Total US construction spending fell 0.2pc to a seasonally adjusted annual rate of $2.1 trillion in January from the prior month, due to declining public spending outweighing weak growth in the private sector, according to the latest data from the US Census Bureau.
Polyvinyl chloride (PVC) demand rebounded from a weak December to start 2024, but producers said it was broadly in line with seasonal norms. While resin volume sales to buyers and converters improved in January, much of it was restocking of inventories, as customers indicated downstream demand remained soft.
As a result of the restocking activity, PVC prices stopped falling in January. Argus assessed January PVC contract prices steady at 57.5¢/lb for the month, roughly $1,268/t. Demand has continued to improve in February, mainly from ongoing inventory rebuilding, with the potential for a price increase to February contracts.
- Total construction spending was still 11.7pc higher than January 2023
- Total private construction was at a rate of $1.62 trillion in January, 0.1pc above December's revised rate and 9.5pc higher than January 2023.
- Private residential spending was at a rate of $901bn, 0.2pc higher than December and 5.2pc higher than the prior year.
- Private manufacturing spending grew 2pc to a rate of $224bn from December and 36.6pc from the prior year.
- Private commercial spending fell 3.3pc to a $126bn rate in January from the prior month but remained 3.1pc higher from January 2023.
- Total public spending was at a rate of $479bn in January, 0.9pc lower than December but 20.1pc higher than January 2023.
- Public spending on highway and street construction and maintenance fell 2.1pc to a $150bn rate from December but was 22.2pc higher than the previous year.
- Spending on the water supply and sewage fell by 1.2pc to a rate of $70bn from December but was 21.6pc higher than January 2023.
| US construction spending | $mn | ||||
| 24-Jan | 23-Dec | +/-% | 23-Jan | +/-% | |
| Total Spending | 2,102,434.0 | 2,105,791.0 | -0.2 | 1,882,199.0 | 11.7 |
| Total Private | 1,623,448.0 | 1,622,263.0 | 0.1 | 1,483,271.0 | 9.5 |
| Total Residential | 900,846.0 | 899,079.0 | 0.2 | 856,046.0 | 5.2 |
| Total Manufacturing | 224,293.0 | 219,973.0 | 2.0 | 164,186.0 | 36.6 |
| Total Commerical | 126,122.0 | 130,379.0 | -3.3 | 122,346.0 | 3.1 |
| Total Public | 478,986.0 | 483,528.0 | -0.9 | 398,928.0 | 20.1 |
| Total Water | 70,156.0 | 70,982.0 | -1.2 | 57,674.0 | 21.6 |
| Total Highway/Road | 150,115.0 | 153,307.0 | -2.1 | 122,859.0 | 22.2 |
| US Census Bureau | |||||
