Construction Spending Strong in Both Private and Public Sectors, Beats Forecast

Construction workers are seen at a new building site in Silver Spring, Maryland, U.S. June 2, 2016. (Photo: Reuters)

Construction spending during November 2017 was estimated at a seasonally adjusted annual rate of $1,257.0 billion, 0.8% (±1.2%)* above the revised October estimate of $1,247.1 billion. The U.S. Census Bureau report shows across-the-board strength in both private and public construction spending.

Economists had pegged the range from a low of -0.3% to a high of 0.8%, with the median forecast 0.6%.

The November figure is 2.4% (±1.5%) above the November 2016 estimate of $1,227.0 billion. During the first eleven months of this year, construction spending amounted to $1,138.3 billion, 4.2% (±1.0%) above the $1,091.9 billion for the same period in 2016.

Private Construction Spending

Spending on private construction was at a seasonally adjusted annual rate of $964.3 billion, 1.0%(± 1.0%)* above the revised October estimate of $955.1 billion. Residential construction was at a seasonally adjusted annual rate of $530.8 billion in November, 1.0% (±1.3%)* above the revised October estimate of $525.3 billion. Nonresidential construction was at a seasonally adjusted annual rate of $433.5 billion in November, 0.9% (± 1.0%)* above the revised October estimate of $429.7 billion.

Public Construction Spending

In November, the estimated seasonally adjusted annual rate of public construction spending was $292.7 billion, 0.2% (±2.0%)* above the revised October estimate of $292.0 billion. Educational construction was at a seasonally adjusted annual rate of $78.8 billion, 3.8% (±2.5%) above the revised October estimate of $75.9 billion. Highway construction was at a seasonally adjusted annual rate of $88.0 billion, 0.8% (±4.6%)* below the revised October estimate of $88.7 billion.