Construction Spending Posts Stronger Gains Than Expected for September

Men work on a construction site for a luxury apartment complex in downtown Los Angeles, California March 17, 2015. (Photo: Reuters)

The U.S. Census Bureau said construction spending posted an unexpectedly strong gain in September, revised down but still beating the flat consensus forecast. Total construction spending was estimated at a seasonally adjusted annual rate of $1,219.5 billion, or 0.3% (±1.3%)* above the revised August estimate of $1,216.0 billion. The September figure is 2.0% (±1.6%) higher than the September 2016 estimate of $1,195.6 billion.

During the first 9 months of this year, construction spending amounted to $917.0 billion, or 4.3% (±1.2%) higher than the $879.6 billion for the same period in 2016.

Private construction was at a seasonally adjusted annual rate of $942.7 billion, 0.4% (±1.0 percent)* below the revised August estimate of $946.2 billion. Residential construction was at a seasonally adjusted annual rate of $515.4 billion in September, essentially unchanged at (±1.3 percent)* the revised August estimate of $515.6 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $427.3 billion in September, or 0.8% (± 1.0%)* below the revised August estimate of $430.6 billion.

The estimated seasonally adjusted annual rate of public construction spending was $276.8 billion in September, or 2.6% (±2.3%) higher than the revised August estimate of $269.8 billion. Educational construction was at a seasonally adjusted annual rate of $71.9 billion, which is 5.2% (±2.8 percent) higher than the revised August estimate of $68.3 billion.

Highway construction was at a seasonally adjusted annual rate of $84.3 billion, or 1.1% (±5.6%)* above the revised August estimate of $83.4 billion.