Global| Nov 01 2018U.S. Construction Spending Holds Steady
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place was unchanged during September (7.2% y/y) following a 0.8% August rise, initially reported as 0.1%. A 0.2% increase had been expected in the Action Economics Forecast Survey. In the private [...]
The value of construction put-in-place was unchanged during September (7.2% y/y) following a 0.8% August rise, initially reported as 0.1%. A 0.2% increase had been expected in the Action Economics Forecast Survey.
In the private sector, activity improved 0.3% (6.1% y/y) after a 0.4% August gain. Residential building activity increased 0.6% (5.1% y/y) following a 0.4% decline. Single-family construction fell 0.8% (+3.1% y/y), down for six months in the last seven. Multi-family construction rebounded 8.7% (8.2% y/y) after a 1.4% drop. Home improvement activity improved 0.1% (7.0% y/y) after a 0.2% rise.
Nonresidential construction in September edged 0.1% higher (7.2% y/y) after a 1.4% jump. The value of commercial building activity declined 1.8% (+4.9% y/y) after a 2.2% increase. Power facility construction fell 1.6% (+9.2% y/y) following a 0.3% improvement. Construction of educational buildings fell 1.5% (+24.7% y/y) after four months of material improvement. Strengthening by 1.6% (-0.2% y/y) was health care building after a 2.2% increase. The value of transportation building strengthened 1.4% (18.9% y/y) after a 1.0% improvement. Factory sector construction increased 1.1% (4.4% y/y) following a 3.0% increase. Office construction rose a steady 0.8% (13.4% y/y).
Construction activity in the public sector decreased 0.9% (+11.0% y/y) in September, third decline in four months. Power facility construction fell 6.1% (-1.1% y/y) as it followed a 2.4% increase. Highway and street building, which accounts for about one-third of nonresidential building, declined 1.1% (+8.6% y/y) following a 0.7% rise. Commercial construction rose 6.2% (21.7% y/y) after two months of sharp decline. Educational building gained 1.2% (9.9% y/y) following a 4.9% surge.
The construction spending figures, some of which date back to 1946 (e.g., public construction figures), are in Haver's USECON database and the expectations figure can be found in the AS1REPNA database.
| Construction Put in Place (SA, %) | Sep | Aug | Jul | Sep Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Total | 0.0 | 0.8 | 0.2 | 7.2 | 4.5 | 7.0 | 10.7 |
| Private | 0.3 | 0.4 | 0.3 | 6.1 | 7.1 | 9.2 | 12.9 |
| Residential | 0.6 | -0.4 | 0.7 | 5.1 | 12.4 | 10.7 | 14.2 |
| Nonresidential | 0.1 | 1.4 | -0.1 | 7.2 | 1.3 | 7.7 | 11.5 |
| Public | -0.9 | 2.2 | -0.1 | 11.0 | -3.2 | 0.7 | 5.1 |
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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