Steel Markets
August 4, 2016
Construction Expenditures through June 2016
Written by Peter Wright
June data for Construction Put in Place (CPIP) was released by the Department of Commerce on Monday August 1st. In June total construction slowed for the third consecutive month on a 3MMA (three month moving average) basis. All four sectors had negative momentum. These are non-residential buildings, residential buildings, infra-structure and other, which is a catch all for industrial, utilities and power.
At SMU we analyze the CPIP data with the intent of providing a clear description of activity that we believe accounts for over 30 percent of total steel consumption. Please see the end of this report for more detail on how we perform this analysis and structure the data but in particular note that we are presenting NONE seasonally adjusted numbers. Much of what you will see in the press may differ from what we are presenting here because others are basing their comments on adjusted values. Our rational is that construction is highly seasonal and our businesses function in a seasonal world. Also we don’t understand how the adjustments are made neither do we trust them.
