Manufacturing Investment Supports Outlays, But Residential Spending Declines
Source: Economics Group of Wells Fargo Bank, N.A.SummaryDespite November’s Improvement, Headwinds Begin to Intensify for the Construction Industry
- In a surprise to the upside, total construction spending increased 0.2% in November. The gain was driven mostly by an 1.7% rise in private nonresidential expenditures. Residential construction spending declined for the sixth consecutive month, with declines on both the public (-0.1%) and private (-0.5%) sides.
- Total nonresidential construction spending rose 0.9% during the month, which equates to an 11.8% year-over-year gain. This increase can be largely attributed to the private category, with private nonresidential construction increasing 1.7% in November. Public nonresidential construction dropped 0.1% over the month.