Vol. 23, No. 8 Feb. 27- March 3, 2023Construction spending dips in January; input prices diverge; multifamily outlook cools Decline in construction spending  Construction spending (not adjusted for inflation) totaled $1.83 trillion in January at a seasonally adjusted annual rate, down 0.1% from the upwardly revised December rate and up 5.7% year-over-year (y/y), the Census Bureau reported on Wednesday. However, without a deflator, it is impossible to say how much of the y/y gain is in units vs. price…  Read more Diverging input prices There have been mixed trends for input prices recently. Makers of hot-rolled coil, the basic ingredient for many construction steel products, have raised prices 56% in the past three months, from $640 per ton at the end of November to $1000/ton last week… Read more Cooling in multifamily construction market The outlook for multifamily construction appears to be cooling. The National Association of Home Builders reported on February 23 that its Multifamily Production Index increased two points to 34 compared to the previous quarter. Readings below 50 indicate that more developers see declining than expanding demand… Read more |