Monday, December 02, 2019

Construction Spending Decreased in October

by Calculated Risk on 12/02/2019 10:20:00 AM

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

Construction spending during October 2019 was estimated at a seasonally adjusted annual rate of $1,291.1 billion, 0.8 percent below the revised September estimate of $1,301.8 billion. The October figure is 1.1 percent above the October 2018 estimate of $1,277.4 billion. During the first ten months of this year, construction spending amounted to $1,086.5 billion, 1.7 percent below the $1,105.2 billion for the same period in 2018.
emphasis added
Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $956.3 billion, 1.0 percent below the revised September estimate of $966.1 billion. ...

In October, the estimated seasonally adjusted annual rate of public construction spending was $334.8 billion, 0.2 percent below the revised September estimate of $335.6 billion.
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 8% above the previous peak in January 2008 (nominal dollars).

Public construction spending is 3% above the previous peak in March 2009, and 28% 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 slightly. Non-residential spending is down 4% year-over-year. Public spending is up 10% year-over-year.

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