Latest News

Construction Spending Increased 0.2% in October


by Calculated Risk on 12/01/2021 10:18:00 AM

From the Census Bureau reported that overall construction spending increased 0.2%:

Construction spending during October 2021 was estimated at a seasonally adjusted annual rate of $1,598.0 billion, 0.2 percent above the revised September estimate of $1,594.8 billion. The October figure is 8.6 percent above the October 2020 estimate of $1,471.7 billion.
emphasis added

Private spending decreased and public spending increased:

Spending on private construction was at a seasonally adjusted annual rate of $1,245.0 billion, 0.2 percent below the revised September estimate of $1,247.9 billion….

In October, the estimated seasonally adjusted annual rate of public construction spending was $353.0 billion, 1.8 percent above the revised September estimate of $346.8 billion.

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.

Residential spending is 14% above the bubble peak (in nominal terms – not adjusted for inflation).

Non-residential spending is 13% above the bubble era peak in January 2008 (nominal dollars), but has been soft recently.

Public construction spending is 8% above the peak in March 2009.

The second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 16.7%. Non-residential spending is up 3.1% year-over-year. Public spending is up 0.4% year-over-year.

Construction was considered an essential service during the early months of the pandemic in most areas, and did not decline sharply like many other sectors. However, some sectors of non-residential have been under pressure. For example, lodging is down 32.4% YoY.

This was below consensus expectations of a 0.4% increase in spending; however, construction spending for the previous two months was revised up.

Eurogroup head Donohoe confident Omicron won’t derail recovery

Previous article

BoE’s Bailey says economic impact of COVID remains strong

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News