MNI DATA ANALYSIS: US December Construction -0.6%>

--Private Residential Spending -1.4%; Nonresidential +0.4%

--Public Construction Spending -0.6%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - Construction spending was down 0.6% in December, 

well below the 0.2% gain expected by MNI, as private residential 

construction declined, and nonresidential construction posted a gain. 

Nonresidential rose by 0.4% compared to a residential construction 

decrease of 1.4%, data released by the Commerce Department Monday 

morning showed. 

     Analysts surveyed by MNI had expected total construction spending 

to rise by 0.2% after a 0.8% increase in November, while the Bloomberg 

consensus also expected a 0.2% gain. October was revised up to a 0.2% 

gain from a 0.1% gain previously reported.   

--PRIVATE BUILDING DECLINES    

     Private residential construction fell by 1.4% in the month, 

following a 3.4% gain in November. Home building ex. new homes, also 

known as remodeling, saw a 0.4% decrease, according to an MNI 

calculation. 

     Also based on an MNI calculation, total new homes fell by 2.0%. 

Single-family building declined 3.2%, and multi-family building posted 

a 3.1% increase. 

     In addition to the decrease in private residential, private 

nonresidential construction rose by only 0.4% in December, driving the 

decrease in total private construction. The main drivers of the category 

were increases in healthcare (+3.3%), manufacturing (+1.7%), and 

lodging (+1.0%). 

--PUBLIC CONSTRUCTION FALLS

     Following a downward November revision to a 1.0% decrease from a 

0.9% decline, public construction spending fell by 0.6% in December. 

     The drop in public construction was driven by a 7.8% decline in 

healthcare, a 5.1% drop in residential, and a 2.9% decline in power. 

This was partially offset by a 6.4% gain in office, and a 6.1% increase 

in commercial. 

     State and local construction was down 0.5% in the month. Federal 

construction was down 2.2%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$]