October 2015 Construction Spending

Click image for larger view 

Click image for larger view

Overall construction spending during October 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,107.4 billion, 1.0% (±1.8%)* above the revised September estimate of $1,096.6 billion. The October figure is 13.0% (±2.5%) above the seasonally adjusted October 2014 estimate of $979.6 billion. The not seasonally adjusted annual change (shown in the table above), was +11.7%.

Year-to-date through October, construction spending amounted to $888.1 billion, 10.7% (±1.3%) above the $802.3 billion for the same period in 2014.

PRIVATE CONSTRUCTION

Spending on private construction amounted to a SAAR of $802.4 billion, 0.8% (±1.0%)* above the revised September estimate of $795.8 billion. Residential construction: $399.0 billion (+1.0 ±1.3%)*; nonresidential construction: $403.4 billion (+0.6 ±1.0%)*.

PUBLIC CONSTRUCTION

In October, the estimated SAAR of public construction spending was $304.9 billion, 1.4% (±3.0%)* above the revised September estimate of $300.8 billion. Educational construction: essentially unchanged (±2.8%)* at $69.2 billion; highway construction: $94.1 billion (+1.1 ±7.1%)*.

* 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 October’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.