Here are some highlights from the Census Bureau's Monthly Construction Spending Report for November 2017.

Total Construction

Construction spending during November 2017 was estimated at a seasonally adjusted annual rate of $1,257.0 billion, 0.8 percent above the revised October estimate of $1,247.1 billion. The November figure is 2.4 percent above the November 2016 estimate of $1,227.0 billion. During the first eleven months of this year, construction spending amounted to $1,138.3 billion, 4.2 percent above the $1,091.9 billion for the same period in 2016.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $964.3 billion, 1.0 percent above the revised October estimate of $955.1 billion. Residential construction was at a seasonally adjusted annual rate of $530.8 billion in November, 1.0 percent above the revised October estimate of $525.3 billion. Nonresidential construction was at a seasonally adjusted annual rate of $433.5 billion in November, 0.9 percent above the revised October estimate of $429.7 billion.

Public Construction

In November, the estimated seasonally adjusted annual rate of public construction spending was $292.7 billion, 0.2 percent above the revised October estimate of $292.0 billion. Educational construction was at a seasonally adjusted annual rate of $78.8 billion, 3.8 percent above the revised October estimate of $75.9 billion. Highway construction was at a seasonally adjusted annual rate of $88.0 billion, 0.8 percent below the revised October estimate of $88.7 billion.

Revisions

The increase in October from September is now reported as +0.9% instead +1.4% as reported last month. However, there were upward revisions in both months so the apparent 0.5 percentage point drop is really an overall gain.

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  • August numbers were revised upward in October.
  • September numbers were revised upward in October and again in November.
  • October numbers were revised upward in November.

Comments

The construction spending report is the most heavily revised of all the reports. This is despite the fact it is seriously delayed. We are just now getting numbers for November.

These numbers will give a boost to GDP estimates for the fourth quarter. Some, but not all, of this end-of-year surge is due to hurricanes.

Mike "Mish" Shedlock

Construction Spending Flat, Private Construction Negative

Economists expected construction spending to rise. Instead, spending was flat, and only because of government spending.

Construction Spending Unexpectedly Weak: Home Repairs Collapse

Economists expected a jump of 0.5% in construction spending. Instead, spending came in at 0.1%.

March Construction Spending Unexpectedly Declined by 0.9%

Construction spending declined 0.9% in March and revisions in February were negative.

Construction Spending Unexpectedly Weak -0.8%: Single-Family Down Every Month

Economists expected construction spending would rise 0.1%. Instead, spending fell 0.8%, including revisions, down 0.4%.

Pondering Today's Gigantic Miss on Construction Spending

The Oct construction spending report was much weaker than expected. That's on top of huge negative revisions for Sept.

Construction Spending Disaster: Expectations Missed, Negative Revisions for 2018

Economists expected construction spending in May to rise 0.6%. Spending rose 0.4%. April was revised 0.9% lower.

Construction Spending Weakness: Private Spending Down 0.5%, Government Up 2.0%

A surge in gov't spending kept construction spending in the green by 0.1%. Private spending is down and trending lower.

Construction Spending Declines 1.7% but Strong Upward Revisions in Jan and Feb

The often volatile and heavily revised construction spending numbers did their thing again in March.

Construction Spending Shows Serious Signs of Rolling Over

Construction spending rose 0.3% in September vs an Econoday consensus of 0.0%. However, the Census Bureau revised August from a 0.5% gain to a 0.1% gain. Effectively, the September boost was about 0.1% from August as initially reported. Close inspection shows serious signs of weakness.