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 10/31/07 For Sep 2007 | ||||||||||||
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Highlights
Construction spending was stronger-than-expected in September, rising 0.3 percent after posting a 0.2 percent dip in August and a 0.8 percent drop in July. September's decline was stronger than the consensus forecast for a 0.5 percent drop in outlays for the month. However, both August and July were revised down somewhat. The prior estimates for August and July, respectively, were up 0.2 percent and down 0.5 percent. September's increase in construction spending was led by healthy gains in public and private nonresidential construction. As expected, private residential outlays fell significantly.
On a year-on-year basis, overall construction outlays were down 0.8 percent in September.
By sectors, private residential construction fell 1.4 percent in September, following a 1.8 percent drop in August. Public outlays jumped 2.3 percent in the latest month, following a 0.3 percent rise in August. Private nonresidential construction increased 1.5 percent in September, following a 1.8 percent boost the prior month.
Today's report falls in line with many we have seen in recent months. Despite the recession in housing, the overall construction sector is still being supported quite well by public and nonresidential activity. September's construction numbers will not make it easier for the Fed to cut rates later today.
Construction spending posted a 0.2 percent partial rebound in August, following a decline of 0.5 percent. As has been the story all year, non-residential and public construction offset weakness on the residential side. Non-residential private construction jumped 2.3 percent in the month while public construction was up 0.7 percent for the month. Private residential construction fell 1.5 percent. Expect more of the same for September.
Construction spending Consensus Forecast for September 07: -0.5 percent
Range: -1.0 to 0.0 (flat) 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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