Friday, February 01, 2019

Construction Spending increased in November

by Calculated Risk on 2/01/2019 11:25:00 AM

Note: This is for November. The release of the December report has not been scheduled yet.

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

Construction spending during November 2018 was estimated at a seasonally adjusted annual rate of $1,299.9 billion, 0.8 percent above the revised October estimate of $1,289.7 billion. The November figure is 3.4 percent above the November 2017 estimate of $1,257.3 billion.
Private spending increased and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $993.4 billion, 1.3 percent above the revised October estimate of $980.4 billion. ...

In November, the estimated seasonally adjusted annual rate of public construction spending was $306.5 billion, 0.9 percent below the revised October estimate of $309.3 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 20% below the bubble peak.

Non-residential spending is 9% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 6% below the peak in March 2009, and 17% 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 1%. Non-residential spending is up 4% year-over-year. Public spending is up 7% year-over-year.

This was above consensus expectations, however spending for September and October were revised down.