U.S. Construction Spending Holds Steady in November
by:Tom Moeller
|in:Economy in Brief
Summary
- Private construction is little changed as single-family improves but multi-family building declines.
- Nonresidential private construction slips for a second month.
- Public sector construction weakens but highways & street construction improves.
The value of construction put in place was unchanged (+3.0% y/y) during November after rising 0.5% in October, revised from 0.4%. A 0.9% decline during September was revised from a 0.1% uptick, according to the U.S. Census Bureau. A 0.3% November increase had been expected in the Action Economics Forecast Survey.
Private construction edged 0.1% higher (2.5% y/y) in November after improving 0.6% in October and a 1.7% September decline, revised from a 0.2% easing. Residential construction also improved 0.1% (3.1% y/y) after a 1.4% October rise and a 3.4% September drop, revised from a 0.4% decline. Single-family building rose 0.3% in November (-0.7% y/y) after 0.4% increases in each of the prior two months. Multi-family unit construction declined 1.3% (-9.5% y/y) after a 0.3% gain. Home improvement building rose 0.4% (13.4% y/y) after strengthening 3.1% in October and an 8.1% September drop, revised from a 1.4% decline.
Nonresidential private construction eased slightly (+1.7% y/y) in November after an unrevised 0.3% October decline. Lodging construction weakened 0.6% (-5.2% y/y) while office building fell 0.2% (-1.6% y/y). Commercial construction improved 0.1% (-9.6% y/y) and healthcare building weakened 0.6% (-3.7% y/y). Educational construction fell 0.5% (+1.1% y/y) and amusement & recreation building eased 0.1% (-1.7% y/y). Transportation outlays improved 0.9% in November (10.3% y/y) while communication spending increased 1.0% (-3.0% y/y). Power construction rose 0.2% (5.0% y/y) while factory construction eased 0.1% (+11.1% y/y).
The value of public construction eased 0.1% (+4.6% y/y) in November for the second consecutive month. September’s increase was revised to 1.7% from 1.1%. Residential public construction rose 1.6% (12.2% y/y) while nonresidential public construction eased 0.2% (+4.4% y/y). Highway & street construction rose 0.2% (-3.5% y/y). Office building declined 0.7% (+9.6% y/y) while commercial construction dropped 1.6% (+39.2% y/y). Health care building rose 2.8% (10.1% y/y) but education facility building eased 0.2% (+3.0% y/y). Public safety building fell 1.3% (+19.6% y/y) while transportation construction fell 0.5% (+6.6% y/y).
The construction figures can be found in Haver's USECON database. The expectations figure is from the Action Economics Forecast Survey in AS1REPNA.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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