December 2018 Construction Spending

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Construction spending during December 2018 was estimated at a seasonally adjusted annual rate (SAAR) of $1,292.7 billion, 0.6% (±1.0%)* below the revised November estimate of $1,300.6 billion (originally $1,299.9 billion); consensus expectations were for +0.6%. The December figure is 1.6% (±1.2%) above the December 2017 SAAR of $1,272.6 billion; the not-seasonally adjusted YoY change (shown in the table below) was +0.8%.

The value of construction in 2018 was $1,297.7 billion, 4.1% (±1.0%) above the $1,246.0 billion spent 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 in December was at a SAAR of $991.2 billion, 0.6% (±0.7%)* below the revised November estimate of $997.1 billion.
- Residential: $536.7 billion, 1.4% (±1.3%) below the revised November estimate of $544.2 billion.
- Nonresidential: $454.5 billion, 0.4% (±0.7%)* above the revised November estimate of $452.9 billion.

The value of private construction in 2018 was $995.6 billion, 3.4% (±1.2%) above the $962.8 billion spent in 2017.
- Residential: $542.3 billion, 3.3% (±2.1%) above the 2017 figure of $524.9 billion.
- Nonresidential: $453.4 billion, 3.5% (±1.2%) above the $437.8 billion in 2017.

Public Construction

Public construction spending in December was $301.5 billion, 0.6% (±1.6%)* below the revised November estimate of $303.5 billion.
- Educational: $77.5 billion, nearly the same as (±1.5%)* the revised November estimate of $77.5 billion.
- Highway: $89.1 billion, 0.9% (±4.3%)* below the revised November estimate of $89.9 billion.

The value of public construction in 2018 was $302.0 billion, 6.6% (±1.8%) above the $283.2 billion spent in 2017.
- Educational: $73.6 billion, 3.8% (±3.5%) above the 2017 figure of $71.0 billion.
- Highway: $92.6 billion, 4.2% (±3.9%) above the $88.9 billion in 2017.

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.