Global| Jan 04 2021U.S. Construction Spending Strengthens During November
by:Tom Moeller
|in:Economy in Brief
Summary
• Monthly improvement is fifth since May. • Residential strength offsets continuing decline in nonresidential. • Public sector building eases. The value of construction put-in-place increased 0.9% (3.8% y/y) during November following [...]
• Monthly improvement is fifth since May.
• Residential strength offsets continuing decline in nonresidential.
• Public sector building eases.
The value of construction put-in-place increased 0.9% (3.8% y/y) during November following a 1.6% October gain, revised from 1.3%. September's 0.2% drop was revised from -0.5%. A 1.1% November increase had been expected in the Action Economics Forecast Survey.
Private construction increased 1.2% (4.1% y/y) in November following a 1.6% October strengthening. Residential construction jumped 2.7% (16.1% y/y) as single-family building surged 5.1% (18.1% y/y), the fifth consecutive month of notably strong increase. The value of multi-family construction held steady (15.8% y/y) after almost a half-year of sizable monthly increases. Home improvement expenditures edged 0.2% higher (13.2% y/y) after improving 0.9% in October.
Weakness in business spending continued. Nonresidential private construction fell 0.8% in November (-9.5% y/y), the fifth consecutive monthly decline. Lodging construction declined 8.1% (-26.5% y/y) while power construction fell 0.9% (-8.5% y/y). Commercial building eased 0.3% (-1.8% y/y) but office building improved 0.3% (-6.6% y/y). Transportation building rose 0.5% (-6.2% y/). Manufacturing construction edged 0.1% higher (-15.1% y/y) while education construction also improved 0.1% (-17.6% y/y).
Public construction slipped 0.2% during November (+3.1% y/y) following a 1.6% October surge. Spending on highways & streets, which makes up nearly one-third of public spending, rose 1.8% (8.7% y/y) but health care outlays declined 2.0% (+6.6% y/y). Power construction fell 1.5% (-13.1% y/y) while educational spending gained 0.3% (-1.3% y/y).
The construction spending figures, some of which date back to 1946 can be found in Haver's USECON database. The expectations reading is in the AS1REPNA database.
| Construction Put in Place (SA, %) | Nov | Oct | Sep | Nov Y/Y | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total | 0.9 | 1.6 | -0.2 | 3.8 | 2.4 | 4.2 | 4.6 |
| Private | 1.2 | 1.6 | -0.2 | 4.1 | 0.8 | 4.0 | 6.1 |
| Residential | 2.7 | 3.2 | 0.9 | 16.1 | -2.4 | 3.4 | 12.4 |
| Nonresidential | -0.8 | -0.6 | -1.6 | -9.5 | 4.5 | 4.8 | -0.7 |
| Public | -0.2 | 1.6 | -0.3 | 3.1 | 7.8 | 4.6 | -0.1 |
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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