Friday, November 01, 2019

Construction Spending Increased in October, Down 2.0% YoY

by Calculated Risk on 11/01/2019 11:20:00 AM

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

Construction spending during September 2019 was estimated at a seasonally adjusted annual rate of $1,293.6 billion, 0.5 percent above the revised August estimate of $1,287.1 billion. The September figure is 2.0 percent below the September 2018 estimate of $1,319.7 billion.
emphasis added
Both private and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $961.7 billion, 0.2 percent above the revised August estimate of $959.9 billion. ...

In September, the estimated seasonally adjusted annual rate of public construction spending was $331.9 billion, 1.5 percent above the revised August estimate of $327.2 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 - but turned down in the 2nd half of 2018 - and is now 25% below the bubble peak.

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

Public construction spending is 2% above the previous peak in March 2009, and 27% 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 down 4%. Non-residential spending is down 6% year-over-year. Public spending is up 7% year-over-year.

This was above consensus expectations.