by Calculated Risk on 1/02/2008 10:57:00 AM

From the Census Bureau: November 2007 Construction Spending at $1,165.1 Billion Annual Rate

Spending on private construction was at a seasonally adjusted annual rate of $860.7 billion, 0.7 percent (±2.2%)* below the revised October estimate of $866.6 billion. Residential construction was at a seasonally adjusted annual rate of $484.9 billion in November, 2.5 percent (±1.3%) below the revised October estimate of $497.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $375.8 billion in November, 1.7 percent (±2.2%)* above the revised October estimate of $369.5 billion.

Note that overall construction spending increased slightly (including public spending), but private construction spending declined in November. Once again, non-residential spending offset some of the decline in private residential construction spending.

Click on graph for larger image.

The graph shows private residential and nonresidential construction spending since 1993.

Over the last couple of years, as residential spending has declined, nonresidential has been very strong. There is plenty of evidence - like the Fed's Loan Officer Survey - that suggests a slowdown in nonresidential spending is imminent, but it hasn't shown up in the construction spending numbers - yet.