U.S. construction spending in December was 0.2 percent below the revised November estimate, yet still 4.2 percent over the December 2015 figures, according to numbers released by the U.S. Census Bureau. Also releasing its year-end numbers, the Bureau places the 2016 value of construction at $1.162 trillion, which is 4.5 percent above the $1.112 trillion spent in 2015.
Compared with the November revised estimate of $1.184 trillion, construction spending in December dipped slightly to $1.181 trillion. Private homebuilding rose 0.5 percent to $466.9 billion in December, compared to the revised November estimate of $464.8 billion. Residential construction was up 5.1 percent for the year, compared with 2015.
On the nonresidential side, spending was essentially flat from November to December, at $430.1 billion for each month. Total nonresidential spending in 2016 increased by 4.1 percent, compared with the previous year. In addition, compared with 2015, total private construction for the year was up 6.4 percent.
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Releasing its fourth quarter results, Volvo Construction Equipment says it ended the year with a global net sales increase of 20 percent to SEK 13,110 million, due to a “favorable product mix, higher sales volumes, lower costs for credit losses in China and reduced operating expenses.”
The announcement was offset, however, by the company’s report that its full year sales decreased by 1 percent to SEK 50,731 million.
“Global demand for construction equipment was largely flat in 2016,” says Martin Weissberg, president of Volvo CE. “However, there were signs of progress in Asia. Volvo shows positive signs of growth in our stronghold segments of excavators, wheel loaders and articulated haulers.”
