Public Spending Buoys October Construction Numbers

Construction
spending was lower on a month-over-month basis in October, but an increase in
public sector spending
held the overall decline to a minimum.  The U.S. Census Bureau said that total
expenditures on spending nationwide was at a seasonally adjusted annual rate of
$1.309 trillion, down 0.1 percent from the revised (from $1.330 trillion) September
rate of 1.311 trillion.  Overall spending
has been relatively flat for some months, but spending is up year-over-year by
4.9 percent.

On
a non-adjusted basis total spending was $117.333 billion during the month
compared to $117.898 in September.  For
the year-to-date (YTD) through October total spending of $1.044 trillion is 5.1
percent higher than through the first 10 months in 2017.

Private
sector spending
was at $998.692 on a seasonally adjusted basis, down 0.4
percent from $1.003 trillion in September and up 3.9 percent compared to
October 2017.  On a non-adjusted basis
spending was $88.295 billion for the month and $839.936 billion for the YTD.  The latter is up 4.4 percent from the same
period in 2017.

Private
sector residential construction was down 0.5 percent from September at a rate
of $538.958 billion and single-family construction was down a half-point as
well, to $282.611 billion.   Both remain
higher than in October 2017, total residential spending by 1.8 percent and
single-family by 2.4 percent.  October
spending on buildings with five or more units was at a rate of $62.035 billion,
up 1.0 percent for the month and 3.2 percent year-over-year.

Of
the 11 categories of non-residential spending, seven declined during the month.  The only two categories that gained more than
a fraction of a point were office, up 1.6 percent, and commercial which gained
3.1 percent.  All but three categories
however were higher than during the previous October.

On
a non-adjusted basis, overall residential expenditures totaled $48.079 billion
for the month and $461.993 for the YTD, an increase of 5.0 percent from the
same period in 2017.  Single-family
construction spending through October was $240.012 billion, a 6.8 percent
increase, while multi-family, at $50.026 billion, is down 0.2 percent thus far
in 2018.

Public
sector spending rose by 0.8 percent from September and 8.5 percent from a year
earlier to a seasonally adjusted annual rate of $310.156 Billion. Residential
spending was up 2.0 percent for the month at a rate of $6.108 billion but that
is 4.8 percent lower than in October 2017.  Spending YTD in the public sector is up 7.3
percent to $256.439 but residential spending has declined by 2.8 percent.

Article source: http://www.mortgagenewsdaily.com/12032018_construction_spending.asp

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