September 2018 Construction Spending

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Construction spending during September 2018 was estimated at a seasonally adjusted annual rate (SAAR) of $1,329.5 billion, nearly the same as (±1.5%)* the revised August estimate of $1,328.8 billion (originally $1,318.5 billion); consensus expectations were for +0.3%. The September figure is 7.2% (±1.8%) above the September 2017 SAAR of $1,240.4 billion; the not-seasonally adjusted YoY change (shown in the table below) was +6.4%.

During the first nine months of this year, construction spending amounted to $982.9 billion, 5.5% (±1.2%) above the $931.3 billion for the same period in 2017.

* 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 was at a SAAR of $1,020.4 billion, 0.3% (±1.0%)* above the revised August estimate of $1,016.9 billion.
- Residential: $556.4 billion, 0.6% (±1.3%)* above the revised August estimate of $553.4 billion.
- Nonresidential: $463.9 billion, 0.1% (±1.0%)* above the revised August estimate of $463.5 billion.

Public Construction

Public construction spending was $309.1 billion, 0.9% (±2.6%)* below the revised August estimate of $312.0 billion.
- Educational: $74.6 billion, 1.2% (±3.1%)* above the revised August estimate of $73.7 billion.
- Highway: $95.2 billion, 1.1% (±6.9%)* below the revised August estimate of $96.2 billion. 

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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.