U.S. Construction Spending Increases 0.5% in October
The seasonally adjusted annual rate of construction spending for October was $1,172.6 billion, according to the latest report from the U.S. Census Bureau. This is 0.5% higher than September’s estimate which has been revised up from $1,150.0 billion to $1,166.5 billion. August’s figure has also been revised up from $1,154.4 billion to $1,166.5 billion.
October’s estimate is 3.4% higher than a year ago. The October 2015 seasonally adjusted annual rate was $1,134.4 billion. During the first 10 months of 2016, construction spending totaled $972.2 billion, 4.5% higher than the same time period last year. Construction spending through the first 10 months of 2015 was at $930.7 billion.
Private construction spending for October was at a seasonally adjusted annual rate of $885.9 billion. This marks a 0.2% decline from September’s figure which was revised up to $887.4 billion from an initial estimate of $879.7 billion. August’s estimate of $881.6 billion was also revised up to $888.4 billion in the latest report.
Despite the decline, total private construction spending is up 4.7% from a year ago. Private nonresidential spending dropped 2.1% to $419.6 billion and private residential was up 1.6% for the month to $466.2 billion.
The biggest increases in private construction over the last 12 months has been for office construction which is up 28.4% and lodging which is up 23.1%. Private educational construction spending is up 18.0% from October 2015 and new multi-family residential is up 11.4%. Religious construction spending has fallen 14.3% over the last 12 months and communication is down 12.0%.
The seasonally adjusted annual rate of public construction spending rose 2.8% in October to $286.8 billion. September’s estimate was revised up from $270.3 billion to $279.1 billion. August’s estimate was also revised up $272.8 billion to $278.1 billion. Despite some increases over the past couple of months, October’s estimate is 0.6% below the October 2015 figure of 288.7 billion.
Public commercial spending has grown 23.3% and educational is up 11.7% from a year ago. Public power construction spending is down 16.1% year-over-year and sewage and waste disposal has fallen 12.0% since October 2015.