U.S. Construction Spending Rises for the Ninth Straight Month in September
Summary
- Total September construction +0.4% (8.7% y/y), matching expectations.
- Residential private construction grows for the fourth time in five months, led by a 1.3% m/m gain in single-family.
- Nonresidential private construction increases for the 15th time in 16 months.
- Public sector construction continues its string of gains, led by a rise in nonresidential public construction.
The value of construction put in place rose 0.4% m/m in September after an upwardly revised 1.0% rise in August (+0.5% initially) and a downwardly revised 0.7% increase in July (+0.9% previously), according to the U.S. Census Bureau. The September reading registered the ninth consecutive monthly gain and matched the forecast in the Action Economics Forecast Survey. The year-on-year rate accelerated to a one-year-high 8.7% in September from 7.6% in August and a low of 1.3% in April; nevertheless, remaining down from 10.2% y/y in September 2022 and a peak of 16.5% y/y in April 2022.
Private construction grew 0.4% (6.9% y/y) in September after rises of 1.0% in August (+0.5% initially) and 0.5% in July (+1.2% previously). The September reading was the fifth successive m/m increase. Residential private construction rose 0.6% (-2.2% y/y) in September, the fourth m/m rise in five months, after a 1.3% rebound in August. Single-family building grew 1.3% (-5.9% y/y), the fifth straight m/m increase, on top of a 1.7% August rise; it was 46.1% of the residential private construction. Multi-family building dipped 0.1% (+22.3% y/y), the first m/m easing since July, following a 1.0% August increase; it was 15.6% of the residential private construction. Home improvement building was up 0.2% (-5.4% y/y) following a 1.0% August gain and two consecutive m/m drops; it was 38.3% of the residential private construction.
Nonresidential private construction edged up 0.1% (21.3% y/y) in September, the 15th m/m gain in 16 months, after a 0.6% rise in August. The September marginal gain reflected m/m increases of these nonresidential private constructions: amusement & recreation (1.7%; 7.0% y/y), educational (1.4%; 29.1% y/y), commercial (0.6%; 7.9% y/y), utilities (0.4%; 10.1% y/y), and communication (0.4%; 1.2% y/y). In contrast, the following nonresidential private constructions fell m/m in September: religious (-2.4%; +5.4% y/y), transportation (-1.1%; +5.4% y/y), lodging (-0.4%; +15.3% y/y), manufacturing (-0.4%; +62.5% y/y), and health care (-0.3%; +15.0% y/y). Meanwhile, office private construction held steady (7.1% y/y) in September following five successive m/m increases.
The value of public construction rose 0.4% (15.5% y/y) in September, the 13th straight m/m advance, after a 0.9% gain in August (+0.6% initially), reflecting a 3.2% decline (+10.2% y/y) in residential public construction and a 0.5% increase (15.7% y/y) in nonresidential public construction. The following nonresidential public constructions rose m/m in September: commercial (6.4%; 5.3% y/y), utilities (4.6%; 69.1% y/y), educational (1.9%; 16.5% y/y), conservation & development (1.1%; 28.2% y/y), office (1.0%; 20.6% y/y), and amusement & recreation (0.8%; 23.7% y/y). To the downside, the following nonresidential public constructions decreased m/m in September: health care (-1.1%; +16.1% y/y), public safety (-0.7%; +16.2% y/y), sewage & waste disposal (-0.6%; +24.0% y/y), and water supply (-0.4%; +10.5% y/y). Notably, spending on highways & streets, which makes up 29.8% of public construction spending, declined 0.2% (+10.4% y/y) in September following five consecutive m/m increases. Meanwhile, transportation public construction was virtually unchanged (+7.3% y/y) in September after a 1.9% August rebound.
The construction figures can be found in Haver's USECON database. The expectations figure is from the Action Economics Forecast Survey in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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