Construction Spending Increases 0.6 Percent In October, With Gains For Public And Private Nonresidential Projects, Along With Homebuilding

Mixed patterns within categories suggest market is shifting but remains strong overall; manufacturing, power, education, and single-family spending pickup offset drop in highway and multifamily projects. Total construction spending increased by 0.6 percent in October, led by strong gains for manufacturing, power, and education projects as well as single-family homebuilding, according to an analysis of federal spending data the Associated General Contractors of America released today. Association officials noted, however, that spending on other nonresidential segments, including commercial construction and highway and street construction, declined. “It is apparent that the construction market overall remains healthy,” said Ken Simonson, the association’s chief economist. “But a rotation is occurring among nonresidential segments as manufacturing construction expands while commercial construction slumps and highway and street spending stagnates. On the residential side, single-family construction is picking up, while multifamily is descending from record highs.” Construction spending, not adjusted for inflation, totaled $2.027 trillion at a seasonally adjusted annual rate in October. That figure is 0.6 percent above the September rate, which was revised up from the initial estimate. Both residential and nonresidential spending rose overall but with mixed results by segment. READ FULL STORY >>