September 2015 Construction Spending

Click image for larger view 

Click image for larger view

Overall construction spending during September 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,094.2 billion, 0.6% (±1.8%)* above the revised August estimate of $1,087.5 billion (originally $1,086.2 billion). The seasonally adjusted September figure is 14.1% (±2.1%) above the year-earlier estimate of $959.2 billion; the not-seasonally adjusted figure was +14.3% YoY.

During the first nine months of this year, construction spending amounted to $786.6 billion, 10.5% (±1.3%) above the $711.8 billion for the same period in 2014.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $794.2 billion, 0.6% (±0.8%)* above the revised August estimate of $789.7 billion. Residential construction was at a SAAR of $394.7 billion in September, 1.9% (±1.3%) above the revised August estimate of $387.5 billion. Nonresidential construction was at a SAAR of $399.5 billion in September, 0.7% (±0.8%)* below the revised August estimate of $402.2 billion.

PUBLIC CONSTRUCTION

In September, the estimated SAAR of public construction spending was $300.0 billion, 0.7% (±3.0%)* above the revised August estimate of $297.8 billion. Educational construction was at a SAAR of $69.1 billion, 2.4% (±4.1%)* above the revised August estimate of $67.5 billion. Highway construction was at a SAAR of $91.2 billion, 0.3% (±7.2%)* above the revised August estimate of $90.9 billion.

* 90% confidence interval includes zero. The U.S. Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. 

Click image for larger view

Click here for a discussion of September’s new residential permits, starts and completions. Click here for a discussion of new and existing home sales, inventories and prices.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.