Global| Dec 02 2019U.S. Construction Spending Declines Again
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place fell 0.8% (+1.1% y/y) during October following a 0.3% September decline, revised from +0.5%. August's 1.1% increase was revised from -0.3%. A 0.4% October rise had been expected in the Action [...]
The value of construction put-in-place fell 0.8% (+1.1% y/y) during October following a 0.3% September decline, revised from +0.5%. August's 1.1% increase was revised from -0.3%. A 0.4% October rise had been expected in the Action Economics Forecast Survey.
Private construction declined 1.0% (-1.8% y/y) after falling 1.1% in September. Residential building activity fell 0.9% (+0.5% y/y). A 4.5% decline (+8.2% y/y) in home improvements dragged residential building activity lower. It followed a 4.7% September drop, Single-family building increased 1.6% (-3.1% y/y) while multi-family construction fell 1.6% (-2.1% y/y), down significantly for the third straight month.
Nonresidential construction declined 1.2% (-4.3% y/y) with commercial building off 2.4% (-17.7% y/y). Office building eased 0.2% (+1.0% y/y) while communication construction fell 1.9% (-3.2% y/y). Construction of power facilities declined 1.3% (+3.6% y/y).
Public construction eased 0.2% (+10.2% y/y) in October. Construction of highways and streets, the largest category accounting for nearly one-third of public sector building activity, declined 2.2% (+8.4% y/y). Education construction, the second largest category, rose 2.5% (9.8% y/y). Office building improved 0.8% (16.5% y/y), but transportation building eased 0.6% (+13.0% y/y).
The construction spending figures, some of which date back to 1946, are in Haver's USECON database. The expectations reading can be found in the AS1REPNA database.
| Construction Put in Place (SA, %) | Oct | Sep | Aug | Oct Y/Y | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|
| Total | -0.8 | -0.3 | 1.1 | 1.1 | 3.3 | 4.5 | 7.1 |
| Private | -1.0 | -1.1 | 1.5 | -1.8 | 3.2 | 6.0 | 9.3 |
| Residential | -0.9 | -1.1 | 2.7 | 0.5 | 2.8 | 12.4 | 10.6 |
| Nonresidential | -1.2 | -1.0 | 0.0 | -4.3 | 3.7 | -0.7 | 7.9 |
| Public | -0.2 | 1.9 | 0.2 | 10.2 | 3.6 | -0.1 | 1.1 |
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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