| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.1% | -0.2% to 0.5% | 0.1% | -0.1% | 0.1% |
| Year over Year | 4.6% | 4.1% | 4.8% |
Highlights
The dollar value of construction put in place is up 0.1 percent month-over-month in September after up 0.1 percent in August. The increase matches the consensus in the Econoday survey of forecasters. Construction s pending is up 4.6 percent year-over-year. Total residential spending is up 0.1 percent and nonresidential is up 0.2 percent.
Total private residential construction is up 0.2 percent in September from August and up 4.1 percent from September 2023. Spending on new single-family homes is up 0.4 percent in September and up 0.9 percent year-over-year, while spending on multi-unit projects is down 0.1 percent from the prior month and down 8.1 percent compared to September 2023. Spending on home improvement total private residential spending less single- and multi- unit homes is unchanged in September but up 13.5 percent from a year ago.
Total private nonresidential spending is down 0.1 percent in September from August but up 3.5 percent year-over-year. All significant categories of nonresidential spending are down in September.
Total public construction is up 0.5 percent in September from the prior month and up 7.0 percent from September 2023. The two largest categories of public construction both rose in September. Spending on highway and street construction is up 0.5 percent month-over-month and up 1.7 percent year-over-year. Education building is up 0.3 percent month-over-month and up 3.9 percent year-over-year.
Total private residential construction is up 0.2 percent in September from August and up 4.1 percent from September 2023. Spending on new single-family homes is up 0.4 percent in September and up 0.9 percent year-over-year, while spending on multi-unit projects is down 0.1 percent from the prior month and down 8.1 percent compared to September 2023. Spending on home improvement total private residential spending less single- and multi- unit homes is unchanged in September but up 13.5 percent from a year ago.
Total private nonresidential spending is down 0.1 percent in September from August but up 3.5 percent year-over-year. All significant categories of nonresidential spending are down in September.
Total public construction is up 0.5 percent in September from the prior month and up 7.0 percent from September 2023. The two largest categories of public construction both rose in September. Spending on highway and street construction is up 0.5 percent month-over-month and up 1.7 percent year-over-year. Education building is up 0.3 percent month-over-month and up 3.9 percent year-over-year.
Market Consensus Before Announcement
The consensus for construction spending looks for a modest 0.1 percent increase on the month.
Definition
The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.
Description
Construction spending has a direct bearing on stocks, bonds and commodities because it is a part of the economy that is affected by interest rates, business cash flow and even federal fiscal policy. In a more specific sense, trends in the construction data carry valuable clues for the stocks of home builders and large-scale construction contractors. Commodity prices such as lumber are also very sensitive to housing industry trends.
Businesses only put money into the construction of new factories or offices when they are confident that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home.
A portion of construction spending is related to government projects such as education buildings as well a highways and streets. While investors are more concerned with private construction spending, the government projects put money in the hands of laborers who then have more money to spend on goods and services.
On a technical note, construction outlays for private residential, private nonresidential, and government are key inputs into three components of GDP--residential investment, nonresidential structures investment, and the structures portion of government expenditures.
That is why construction spending is a good indicator of the economy's momentum.
Businesses only put money into the construction of new factories or offices when they are confident that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home.
A portion of construction spending is related to government projects such as education buildings as well a highways and streets. While investors are more concerned with private construction spending, the government projects put money in the hands of laborers who then have more money to spend on goods and services.
On a technical note, construction outlays for private residential, private nonresidential, and government are key inputs into three components of GDP--residential investment, nonresidential structures investment, and the structures portion of government expenditures.
That is why construction spending is a good indicator of the economy's momentum.
