Construction Spending Posts Stronger Gains Than Expected for September

The U.S. Census Bureau said construction spending posted an unexpectedly strong gain in September, revised down but still beating the flat consensus forecast. Total construction spending was estimated at a seasonally adjusted annual rate of $1,219.5 billion, or 0.3% (±1.3%)* above the revised August estimate of $1,216.0 billion. The September figure is 2.0% (±1.6%) higher than the September 2016 estimate of $1,195.6 billion.

During the first 9 months of this year, construction spending amounted to $917.0 billion, or 4.3% (±1.2%) higher than the $879.6 billion for the same period in 2016.

Private construction was at a seasonally adjusted annual rate of $942.7 billion, 0.4% (±1.0 percent)* below the revised August estimate of $946.2 billion. Residential construction was at a seasonally adjusted annual rate of $515.4 billion in September, essentially unchanged at (±1.3 percent)* the revised August estimate of $515.6 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $427.3 billion in September, or 0.8% (± 1.0%)* below the revised August estimate of $430.6 billion.

The estimated seasonally adjusted annual rate of public construction spending was $276.8 billion in September, or 2.6% (±2.3%) higher than the revised August estimate of $269.8 billion. Educational construction was at a seasonally adjusted annual rate of $71.9 billion, which is 5.2% (±2.8 percent) higher than the revised August estimate of $68.3 billion.

Highway construction was at a seasonally adjusted annual rate of $84.3 billion, or 1.1% (±5.6%)* above the revised August estimate of $83.4 billion.