Thursday, November 01, 2018

Construction Spending increased slightly in September

by Bill McBride on 11/01/2018 11:26:00 AM

From the Census Bureau reported that overall construction spending increased slightly in September:

Construction spending during September 2018 was estimated at a seasonally adjusted annual rate of $1,329.5 billion, nearly the same as the revised August estimate of $1,328.8 billion. The September figure is 7.2 percent above the September 2017 estimate of $1,240.4 billion.
Private spending increased and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $1,020.4 billion, 0.3 percent above the revised August estimate of $1,016.9 billion. ...

In September, the estimated seasonally adjusted annual rate of public construction spending was $309.1 billion, 0.9 percent below the revised August estimate of $312.0 billion.
emphasis added
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 had been increasing - although has declined slightly recently - and is still 18% below the bubble peak.

Non-residential spending is 12% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 5% below the peak in March 2009, and 18% above the austerity low in February 2014.

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

On a year-over-year basis, private residential construction spending is up 5%. Non-residential spending is up 7% year-over-year. Public spending is up 11% year-over-year.

This was below consensus expectations, however spending for July and August were revised up.