Global| Dec 02 2014U.S. Construction Spending Rebounds
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place recovered 1.1% (3.3% y/y) during October following a 0.1% September slip, revised from -0.4%. Despite the latest gain, forward momentum continued to fade. The increase exceeded expectations for a [...]
The value of construction put-in-place recovered 1.1% (3.3% y/y) during October following a 0.1% September slip, revised from -0.4%. Despite the latest gain, forward momentum continued to fade. The increase exceeded expectations for a 0.6% rise in the Action Economics Forecast Survey.
Private sector construction outlays increased 0.6% in October and y/y growth improved to 4.0%. Residential building activity gained 1.3% (1.9% y/y) but remained 2.8% below the January peak. Single-family building grew 1.8% (13.2% y/y) and multi-family building increased 1.0% (27.2% y/y). Spending on improvements rose 0.6% (-19.2% y/y), the first monthly gain since December. Nonresidential building activity slipped 0.1% (+6.4% y/y). A 2.6% decline (+9.3% y/y) in commercial building offset a 0.8% gain (20.9% y/y) in office building. Educational building was roughly unchanged (-5.2% y/y) but amusements & recreation construction jumped 1.0% (-5.2% y/y).
Building in the public sector recovered 2.3% (1.5% y/y) following two months of decline. The rise lifted activity 6.9% from its December low. A 2.4% rise (+1.8% y/y) in nonresidential building reflected an 8.1% increase (-2.0% y/y) in office construction. Educational building gained 2.2% (6.1% y/y) and highways & streets construction improved 1.1% (-0.1% y/y).
The construction spending figures are in Haver's USECON database and the expectations figure is contained in the AS1REPNA database.
| Construction Put in Place (%) | Oct | Sep | Aug | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 1.1 | -0.1 | 0.1 | 3.3 | 5.7 | 9.2 | -2.1 |
| Private | 0.6 | 0.5 | 0.2 | 4.0 | 10.1 | 16.0 | -0.1 |
| Residential | 1.3 | 0.8 | -0.8 | 1.9 | 20.4 | 14.4 | 1.9 |
| Nonresidential | -0.1 | 0.2 | 1.3 | 6.4 | 0.6 | 17.5 | -1.8 |
| Public | 2.3 | -1.6 | -0.2 | 1.5 | -3.5 | -2.8 | -5.4 |
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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