November 2015 Construction Spending

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After revising data back to January 2005, the Census Bureau reported that overall construction spending during November 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,122.5 billion, 0.4% (±1.5%)* below October’s $1,127.0 billion. The November figure is 10.5% (±1.8%) above the year-earlier estimate of $1,016.1 billion. The not-seasonally adjusted YoY increase (shown in the figure and table above) was 9.7%.

During the first 11 months of 2015, construction spending amounted to $1,011.9 billion, 10.7% (±1.2%) above the $913.9 billion for the same period in 2014.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $828.2 billion, 0.2% (±0.8%)* below October’s $829.7 billion. Residential construction: $427.9 billion, 0.3% (±1.3%)* above October’s $426.8 billion. Nonresidential construction: $400.3 billion, 0.7% (±0.8%)* below October’s $402.9 billion.

PUBLIC CONSTRUCTION

Public construction spending was $294.3 billion (-1.0 ±2.5%)*. Educational construction: $71.2 billion (+5.0 ±3.9%). Highway construction: $90.7 billion (-1.3 ±5.6%)*.

* 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. 

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Click here for a discussion of November’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.