Construction Spending Dips in December

Residential and Nonresidential Outlays Both Decline to End 2022

Source: Economics Group of Wells Fargo Bank, N.A.Summary Construction Downshifts in December

  • Total construction spending declined 0.4% during December. Total residential (-0.3%) and nonresidential (-0.5%) spending both fell during the month. Public (-0.4%) and private (-0.4%) outlays also slipped.
  • Overall residential spending sunk 0.3% in December, the seventh straight monthly decline. The monthly weakness was once again on the single-family side, with outlays falling by 2.3%. A move lower in mortgage rates over the past few weeks appears be lifting the spirits of home builders. That noted, single-family permits continue to trend lower, which suggests more spending declines are on the horizon.