Construction spending has rolled over, led by residential.

Econoday economists expected a 0.3% rise this month (why, I have no idea given the state of housing). Instead, total spending fell 0.1% in October from September that was revised 0.1% lower.

This marks the third consecutive decline and fourth in five months.

Key Points

RECOMMENDED ARTICLES

  • Spending on new single-family homes in October fell 0.5 percent with home-improvement spending down 0.9 percent, both offsetting a strong 1.0 percent rise in multi-family homes.
  • Private nonresidential construction fell 0.3 percent in October with declines in power, manufacturing, transportation and commercial components offsetting another strong gain for office building.
  • Public building has been a strength for the construction sector as it was again in October. Educational building rose 2.6 percent in the month though highway & street spending did edge 0.1 percent lower.
  • Total residential spending is up only 1.8 percent year-on-year with single-family up 2.4 percent, home improvements up only 0.4 percent, and multi-family up 3.2 percent. The softness on the residential side is limiting overall construction spending to a 4.9 percent yearly gain.
  • Year-over-year, education is up 9.2 percent and highway & streets up 5.2 percent.

In addition to housing, private construction spending looks to have topped.

Get ready for makeshift government projects.

Mike "Mish" Shedlock

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%.

Existing Home Sales Decline Third Month Despite Rising Inventory

Existing home sales declined for the third month, fourth year-over-year. May sales were revised lower.

Construction Spending Dips Slightly in July

Construction spending declined 0.1% in July. With major revisions being the norm, consider it flat.

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.

March Construction Spending Unexpectedly Declined by 0.9%

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

Construction Spending Accelerates

Construction spending rose more than expected in November. Revisions add to the gains.

Construction Spending Flat, Private Construction Negative

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

Construction Spending Falls Sharply, March Revised Higher: Construction Spending Mysteries

The construction spending reports by the Census Department remain a complete joke. Once again, heavy revisions are in play.

Construction Spending Unexpectedly Declines One Percent

Construction spending took an unexpected dive of 1% today vs. an Econoday expectation of +0.5%.