November 2020 Construction Spending

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Construction spending during November 2020 was estimated at a seasonally adjusted annual rate (SAAR) of $1,459.4 billion, 0.9% (±0.8%) above the revised October estimate of $1,446.9 billion (originally $1,438.5 billion); consensus expectations were for +1.1%. The November figure is 3.8% (±1.3%) above the November 2019 SAAR of $1,405.5 billion; the not-seasonally adjusted YoY change (shown in the table below) was +4.3%.

During the first eleven months of this year, construction spending amounted to $1,314.1 billion, 4.4% (±1.0%) above the $1,258.8 billion for the same period in 2019.

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Private Construction

Spending on private construction was at a SAAR of $1,111.8 billion, 1.2% (±0.5%) above the revised October estimate of $1,098.6 billion (originally $1,093.7 billion):
* Residential. $658.1 billion, +2.7% (±1.3%), of which
* Home improvement. $226.6 billion, +0.2% (+15.9% YoY);
* Nonresidential. $453.8 billion, -0.8% (±0.5%).

Public Construction

Public construction spending was $347.6 billion, 0.2% (±1.3%)* below the revised October estimate of $348.3 billion (originally $344.8 billion):
* Educational. $86.7 billion, +0.3% (±1.2%)*;
* Highway. $97.5 billion, +1.8% (±3.5%)*.

* 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.