Construction Spending Rose Sharply in November, Quadruples Forecast

Construction spending gained 0.8% (±1.3%) in November at a seasonally adjusted annual rate of $1,299.9 billion, quadruple the 0.2% consensus forecast.

The range of forecasts spanned from a low of -0.1% to a high of 2.0%. The revised October estimate came in at $1,289.7 billion.

The latest gain in November drove construction spending 3.4% (±1.5%) higher than the November 2017 estimate of $1,257.3 billion.

During the first eleven months of this year, construction spending amounted to $1,200.7 billion, or 4.5% (±1.2%) higher than the $1,149.3 billion for the same period in 2017.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $993.4 billion, 1.3% (±0.8%) above the revised October estimate of $980.4 billion. Residential construction was at a seasonally adjusted annual rate of $542.5 billion in November, 3.5% (±1.3%) above the revised October estimate of $524.2 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $450.8 billion in November, 1.2% (±0.8%) below the revised October estimate of $456.1 billion.

Public Construction

The estimated seasonally adjusted annual rate of public construction spending was $306.5 billion in November, 0.9% (±2.3%) below the revised October estimate of $309.3 billion.

Educational construction came in at a seasonally adjusted annual rate of $76.7 billion, or 2.0% (±1.6 percent)* lower than the revised October estimate of $78.3 billion.

Highway construction was estimated at a seasonally adjusted annual rate of $93.4 billion, which is 1.7% (±5.6%)* higher than the revised October estimate of $91.8 billion.