Gigantic Miss

Economists at Econoday expected construction spending to rise 0.4% in October. Instead, spending fell 0.8%.

Worse yet, the Census Department revised september spending from 0.5% to -0.3%.

All told that is a gigantic economic estimate miss of a full 2.0 percentage points.

Residential Construction

Despite glowing new home sales reports, residential construction spending peaked in February of 2018.

Government spending has kept total construction spending flat.

If this was a single report, I would suspect an outlier. But the key chart lines point to early 2018.

New Home Sales Highest in 12 Years

RECOMMENDED ARTICLES

Image placeholder title

Six days ago I reported New Home Sales Highest in 12 Years.

Q: Does today's report make sense?

A: Actually, it does.

Median Sales Price of Houses Sold for the United States

Image placeholder title

The median home sales price peaked in the fourth quarter of 2017.

Builders are building cheaper homes because no one can afford anything else.

Mike "Mish" Shedlock

Construction Spending Accelerates

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

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.

March Construction Spending Unexpectedly Declined by 0.9%

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

Construction Spending Dips Slightly in July

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

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%.

Construction Spending Unexpectedly Weak: Home Repairs Collapse

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

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 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.