Thursday, December 01, 2011

Construction Spending increased in October

by Bill McBride on 12/01/2011 02:12:00 PM

Note: I'll post a graph of November auto sales around 4 PM ET.

This morning the Census Bureau reported that overall construction spending increased in October:

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during October 2011 was estimated at a seasonally adjusted annual rate of $798.5 billion, 0.8 percent (±1.6%) above the revised September estimate of $792.1 billion. The October figure is 0.4 percent (±1.9%) below the October 2010 estimate of $802.0 billion.
Private construction spending increased in October:
Spending on private construction was at a seasonally adjusted annual rate of $518.6 billion, 2.3 percent (±1.1%) above the revised September estimate of $507.1 billion. Residential construction was at a seasonally adjusted annual rate of $239.0 billion in October, 3.4 percent (±1.3%) above the revised September estimate of $231.2 billion. Nonresidential construction was at a seasonally adjusted annual rate of $279.6 billion in October, 1.3 percent (±1.1%) above the revised September estimate of $275.9 billion.
Private Construction Spending Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Private residential spending is 65% below the peak in early 2006, and non-residential spending is 32% below the peak in January 2008.

Public construction spending is now 14% below the peak in March 2009.

Private Construction SpendingThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, both private residential and non-residential construction spending have turned positive, but public spending is now falling on a year-over-year basis as the stimulus spending ends. The year-over-year improvements in private non-residential are mostly due to energy spending (power and electric).

Earlier:
ISM Manufacturing index indicates slightly faster expansion in November
LPS: Mortgages In Foreclosure Process at an All-Time High

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