2018 Economic Calendar
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Construction Spending  
Released On 12/3/2018 10:00:00 AM For Oct, 2018
PriorPrior RevisedConsensusConsensus RangeActual
Construction Spending - M/M change0.0 %-0.1 %0.3 %0.0 % to 0.6 %-0.1 %
Construction Spending - Y/Y change7.2 %4.9 %

Highlights
Construction has been a soft spot of the economy evident once again in October where spending fell 0.1 percent for the third straight decline and the fourth decline in five months. Spending on new single-family homes in October fell 0.5 percent with home-improvement spending down 0.9 percent, both offsetting a strong 1.0 percent rise in multi-family homes.

Private nonresidential construction fell 0.3 percent in October with declines in power, manufacturing, transportation and commercial components offsetting another strong gain for office building.

Public building has been a strength for the construction sector as it was again in October. Educational building rose 2.6 percent in the month though highway & street spending did edge 0.1 percent lower.

But the year-on-year rates really tell the story with education up 9.2 percent and highway & streets up 5.2 percent. Private nonresidential spending is up a very solid 6.4 percent led by office building at 16.3 percent with the commercial subcomponent bringing up the rear at a 0.6 percent gain.

Total residential spending is up only 1.8 percent year-on-year with single-family up 2.4 percent, home improvements up only 0.4 percent, and multi-family up 3.2 percent. The softness on the residential side is limiting overall construction spending to a 4.9 percent yearly gain.

Nonresidential and public building have been solid this year but the rise underway in mortgage rates appears to be taking the steam out of what was already an exhausted looking housing sector.

Consensus Outlook
Forecasters see a modest bounce higher for construction spending in October which looks to get a boost from a very easy comparison with September which came in unchanged. Econoday's consensus is a 0.3 percent gain following a September report where weakness in both residential and non-residential construction offset strength in public spending.

Definition
The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.  Why Investors Care
 
[Chart]
Year-on-year change in construction spending, a data set that tracks both residential and non-residential spending, offers a definitive indication on the health of the construction sector.
Data Source: Haver Analytics
 
 

2018 Release Schedule
Released On: 1/32/13/14/25/16/17/28/19/410/111/112/3
Release For: NovDecJanFebMarAprMayJunJulAugSepOct
 


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