Construction Spending Increased in November - InvestingChannel

Construction Spending Increased in November

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

Construction spending during November 2019 was estimated at a seasonally adjusted annual rate of $1,324.1 billion, 0.6 percent above the revised October estimate of $1,316.8 billion. The November figure is 4.1 percent above the November 2018 estimate of $1,271.4 billion. During the first eleven months of this year, construction spending amounted to $1,201.6 billion, 0.8 percent below the $1,211.8 billion for the same period in 2018.
emphasis added

Both private and public spending increased:

Spending on private construction was at a seasonally adjusted annual rate of $985.5 billion, 0.4 percent above the revised October estimate of $981.1 billion. …

In November, the estimated seasonally adjusted annual rate of public construction spending was $338.6 billion, 0.9 percent above the revised October estimate of $335.7 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.  Now it is increasing again, but is still 21% below the bubble peak.

Non-residential spending is 8% above the previous peak in January 2008 (nominal dollars).

Public construction spending is 4% above the previous peak in March 2009, and 29% 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 3%. Non-residential spending is up slightly year-over-year. Public spending is up 12% year-over-year.

This was above consensus expectations, and construction spending for September and October were revised up. A strong report.

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