New Construction Spending Jumps in November

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The U.S. Census Bureau reported Tuesday morning that construction spending in November rose by 0.9% to an estimated seasonally adjusted annual rate of about $1.182 trillion from the upwardly revised estimate of $1.171 trillion in October. Compared with November 2015, total spending is up 4.1%.

For the first 11 months of 2016, new construction spending rose 4.4% to an estimated total of $1.071 trillion compared with the 2015 total of $1.026 billion.

The consensus estimate by economists surveyed by Bloomberg News called for a rise of 0.6% in construction spending for November and a year-over-year increase of 3.4%.

For the month of November private residential construction rose 1% month over month to $462.91 billion. Private non-residential construction rose 0.9% month-over-month and total private construction spending on a seasonally adjusted annual basis rose 1% to $892.82 billion compared with a revised October total of $884.33 billion.

In the private sector, single family residential construction is 6% higher than it was a year ago and multi-family construction is up 5.4% from November 2015. Private, non-residential construction is up 1.3% year over year.

In the public sector, seasonally adjusted total spending rose 0.8% compared with October and is now 2.6% higher compared with November 2015. Spending on educational facilities increased by 2.1% month over month, and is up 6.2% from November 2015 spending. Public residential construction rose 0.5% month over month, and remains up 2.7% compared with November 2015.

Private sector spending on new housing is up 3% year over year thru November and private sector spending on non-residential construction is up 4.9% year over year. Total public and private construction spending is up 4.1% compared with November 2015.