The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Why Investors Care
| Released on 11/3/08 For Sep 2008 | ||||||||||||
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Highlights
Construction spending in September declined but not as much as feared. Construction outlays fell 0.3 percent in September, following a revised 0.1 percent dip in August. The September decrease was less than the consensus forecast for a 0.8 percent drop. But July and August numbers were revised down notably. Weakness in the latest month was led by declines in private residential and public construction - both fell 1.3 percent for September. The private nonresidential component rebounded 1.2 percent.
Within the residential component, single-family construction dropped 4.7 percent after a 4.0 percent fall in August. Multifamily outlays posted a partial rebound of 2.7 percent, following a 6.6 decrease in August.
Leading the rebound in private nonresidential construction were a 5.2 percent turnaround in manufacturing and a 2.5 percent rise in power construction outlays.
On a year-on-year basis, overall construction outlays were unchanged at down 6.6 percent in September.
Today's numbers show construction still on a downturn. Tight mortgage credit, pullbacks in investment by businesses, and weak revenues for state and local governments point to continued negative numbers in coming months. For today, the dip was less than expected but focus will be a very negative ISM manufacturing number.
Construction spending was unchanged in August, following a decline of 1.4 percent in the prior month. Strength in the latest month was primarily in public outlays, which rose 0.8 percent after a 1.3 percent boost in July. Residential outlays rebounded 0.3 percent after a 3.9 percent fall the prior month. But the private nonresidential component is showing new weakness, declining 0.8 percent in August, following a 1.1 percent decrease in July. Given that slowing revenue growth for states portends an easing on public construction, there is no major component in construction outlays where the outlook is positive.
Construction spending Consensus Forecast for September 08: -0.8 percent
Range: -1.5 to -0.2 percent
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Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong. |
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