Construction Spending Increased 0.2% in November

by Calculated Risk on 1/03/2023 10:37:00 AM

From the Census Bureau reported that overall construction spending increased:

Construction spending during November 2022 was estimated at a seasonally adjusted annual rate of $1,807.5 billion, 0.2 percent above the revised October estimate of $1,803.2 billion. The November figure is 8.5 percent above the November 2021 estimate of $1,665.2 billion.
emphasis added

Private spending increased and public spending decreased:

Spending on private construction was at a seasonally adjusted annual rate of $1,426.4 billion, 0.3 percent above the revised October estimate of $1,421.6 billion. …

In November, the estimated seasonally adjusted annual rate of public construction spending was $381.1 billion, 0.1 percent below the revised October estimate of $381.6 billion.

Construction Spending Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Residential (red) spending is 8.2% below the recent peak.

Non-residential (blue) spending is at a new peak.

Public construction spending is close to the recent peak.

Year-over-year Construction SpendingThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 5.3%. Non-residential spending is up 12.6% year-over-year. Public spending is up 10.4% year-over-year.

This was above consensus expectations of a 0.4% decrease in spending, and construction spending for the previous two months combined were revised up.

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