December 2017 Construction Spending

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Construction spending during December 2017 was estimated at a seasonally adjusted annual rate (SAAR) of $1,253.3 billion, 0.7% (±1.0%)* above the revised November estimate of $1,245.1 billion (originally $1,257.0 billion); consensus expectations were for +0.5%. The December figure is 2.6% (±1.3%) above the December 2016 SAAR of $1,221.6 billion; the not-seasonally adjusted YoY change (shown in the table below) was +1.6%.

The value of construction in 2017 was $1,230.6 billion, 3.8% (±1.0%) above the $1,185.7 billion spent in 2016.

* 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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Private Construction

Spending on private construction in December was at a SAAR of $963.2 billion, 0.8% (±1.2%)* above the revised November estimate of $955.9 billion.
- Residential: $526.1 billion, +0.5% (±1.3%)*;
- Nonresidential: $437.1 billion, +1.1% (±1.2%)*.

The value of private construction in all of 2017 was $950.7 billion, 5.8% (±1.0%) above the $898.7 billion spent in 2016.
- Residential: $515.9 billion, +10.6% (±2.1%);
- Nonresidential: $434.8 billion, +0.6% (±1.0%)*.

Public Construction

Public construction spending in December was $290.0 billion, 0.3% (±1.5%)* above the revised November estimate of $289.1 billion.
- Educational: $75.5 billion, +1.6% (±2.1%)*;
- Highway: $88.3 billion, +0.3% (±3.5%)*.

The value of public construction in all of 2017 was $279.8 billion, 2.5% (±1.8%) below the $287.0 billion spent in 2016.
- Educational: $71.2 billion, +2.5% (±3.5%)*;
- Highway: $87.7 billion, -3.7% (±4.1%)*. 

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Click here for a discussion of December’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.