December U.S. Construction Spending Surged 1.5% M/M

U.S. total construction spending surged 1.5% over November, which was over twice the 0.7% expected by consensus and pushes spending to the highest level in almost two years. However, it comes after the 1.2% jump reported the prior month was downwardly revised to a 0.4% gain. Gains were seen across all groups, with gains in nonresidential construction leading the pack. Total nonresidential construction spending was up 1.9% m/m and is up 4.5% over last year, while total residential construction rose 0.7% m/m and is up just 3.8% y/y. Private nonresidential construction was up 3.3% m/m and is up 11.4% over last year. Private residential construction was up 0.8% m/m and is up a more modest 4.9% over last year. Total public construction rose 0.5% m/m in December and is down 2.5% over last year. While the stronger than expected headline reading is somewhat masked by the downward revision the prior month, it still will help provide a boost to the 4Q GDP component and to overall 4Q GDP in the 2nd release. 

The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions.

Post a Comment

Thank you for submitting a comment. We ask you to use the comment guidelines to promote thoughtful and productive discussions. Your comment will be approved before it will be posted. Thank you for your patience.

Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

  • CATEGORIES

  • Recent Comments

  • Tags