According to Wells Fargo Securities today, construction
spending rose 0.8 percent in October, but fell 0.3 percent in September. All of
the improvement in October was in public spending, which rose 3.9 percent.
Private construction outlays fell 0.5 percent.
Public Outlays
Surprise the Upside: Due to the
partial government shutdown, construction spending data was released for
September and October simultaneously. Outlays rose o.8 percent in October to a $908.4
billion annualized pace. Public spending rose for both residential and
nonresidential, while private spending showed broad-based weakness. On a
year-ago basis, private
Private
Nonresidential Spending Showing Weakness:
While the trend shows the housing recovery remains intact, private
nonresidential outlays have shown weakness over the past two months. Much of
the decline is concentrated in communication, which is down 16.5 percent over
last year. Despite the slowdown, we
could see a slight upward revision to third quarter structure investment as the
assumption made by the U.S. BEA was a bit more conservative than today’s print.
Source: Wells Fargo Securities, LLC Economics Group
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