Monday, December 03, 2018

Construction Spending decreased slightly in October

by Bill McBride on 12/03/2018 11:41:00 AM

From the Census Bureau reported that overall construction spending decreased slightly in October:

Construction spending during October 2018 was estimated at a seasonally adjusted annual rate of $1,308.8 billion, 0.1 percent below the revised September estimate of $1,310.8 billion. The October figure is 4.9 percent above the October 2017 estimate of $1,247.5 billion.
Private spending decreased and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $998.7 billion, 0.4 percent below the revised September estimate of $1,003.0 billion. ...

In October, the estimated seasonally adjusted annual rate of public construction spending was $310.2 billion, 0.8 percent above the revised September estimate of $307.8 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  recently - and is still 21% below the bubble peak.

Non-residential spending is 11% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 5% below the peak in March 2009, and 19% 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 2%. Non-residential spending is up 6% year-over-year. Public spending is up 8% year-over-year.

This was below consensus expectations, and spending for August and September were revised down. A weak report.