2018 Economic Calendar
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Construction Spending  
Released On 7/2/2018 10:00:00 AM For May, 2018
PriorPrior RevisedConsensusConsensus RangeActual
Construction Spending - M/M change1.8 %0.9 %0.6 %0.3 % to 1.2 %0.4 %
Construction Spending - Y/Y change7.6 %5.0 %4.5 %

Strength in housing is leading the construction sector, making for a respectable 0.4 percent rise in overall construction spending during May. Residential spending rose 0.8 percent led by a 1.6 percent increase for new multi-family units, a 0.9 percent rise in home improvements, and a very useful 0.8 percent increase in new single-family homes. Year-on-year, residential spending is up a very strong 6.6 percent vs 4.5 percent for overall spending.

Spending overall is being held back by non-housing with private nonresidential spending down 0.3 percent in the month for only a 1.8 percent rise on the year. Manufacturing is the weak spot here, down 2.4 percent on the month and down 11.0 percent on the year to belie indications of strength in business investment. Office spending, however, is a positive, up 1.4 percent on the month for a 9.7 percent year-on-year gain.

Public spending is mixed with the educational component up on the month but only 0.4 percent higher on the year with highways & streets down on the month but still up 5.8 percent on the year. Federal spending is down 5.5 percent on the year with state & local spending, a much larger category in this report, up a solid 5.6 percent.

Spots of weakness aside, gains in housing and particularly single-family homes are major positives, pointing to strength for new home sales and also construction employment with related payroll data to be posted in Friday's employment report. Note that today's report includes annual revisions and that revisions to the two prior months are mixed with April revised sharply downward, now at plus 0.9 percent, but March revised sharply upward to a dip of 0.9 percent.

Consensus Outlook
A rebound in multi-family units helped drive construction spending 1.8 percent higher in April to fully reverse the prior month's 1.7 percent decline. Construction spending, often volatile month to month, is expected to rise a very constructive 0.6 percent in May in what would be a positive for second-quarter GDP.

The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.  Why Investors Care
Year-on-year change in construction spending, a data set that tracks both residential and non-residential spending, offers a definitive indication on the health of the construction sector.
Data Source: Haver Analytics

2018 Release Schedule
Released On: 1/32/13/14/25/16/17/28/19/410/111/112/3
Release For: NovDecJanFebMarAprMayJunJulAugSepOct

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