Perhaps construction spending is finally emerging
from the doldrums where it has lingered for months. For the second month in a row the Census
Bureau reports an uptick in total spending and in its publicly and privately
spending posted a 0.9 percent gain in November to a seasonally adjusted annual
rate of $1.18 trillion from the revised (from $1.172 trillion) $1.171 trillion
in October. This is 4.1 percent above
the spending rate in November 2015. Expenditures
in the first 11 months of 2016 totaled $1.07 trillion compared to $1.03
trillion for the same period in 2015, an increase of 4.4 percent.
construction was at a seasonally adjusted annual rate of $892.8 billion, 1.0
percent higher than the October total, which was revised from $885.9 billion to
$884.3 billion, and a 4.6 percent gain from a year earlier.
spending on residential construction was also up 1.0 percent to an annual rate
of $462.91 billion and was 3.0 percent higher on a year-over-year basis. The gain in residential construction was all
in the single-family sector which increased 1.8 percent although it was down
0.9 percent from a year earlier.
Conversely, multi-family spending dropped 2.7 percent from October but
remained 10.7 percent above its November 2015 pace.
Spending on residential
construction was $420,95 billion through the end of November compared to
$400.84 billion during the same period a year earlier, an increase of 5.0
percent. Single family spending year to
date grew by 4.5 percent while multi-family construction was up 17.1 percent.
construction rose 0.8 percent to $289.28 billion from $287.10 billion in
October and is 2.6 percent ahead of the November 2015 pace. Year-to-date spending, however, is down 0.9