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2008 Economic Calendar |
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Resource Center » U.S. & Intl Recaps | Release Dates | Why Investors Care | Today's Calendar
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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
| Released on 11/1/06 For Sep 2006 | ||||||||||||
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Highlights
Construction spending declined in September with weakness in residential construction more than offsetting gains in nonresidential and public construction. Construction spending declined 0.3 percent in September following no change in August. The September drop met the consensus expectation for a 0.3 percent decline in September. On a year-on-year basis, overall construction outlays eased to a 2.9 percent increase in September from 4.3 percent the prior month.
Most of September's weakness was in private residential construction which fell 1.1 percent after a 1.6 percent drop in August. In the latest month, single-family housing declined 2.5 percent while multifamily construction rose 2.3 percent. Private nonresidential outlays continued upward but at a slower pace with a 0.1 percent rise in September, following a 3.1 percent surge in August. Private nonresidential construction was led by communication, lodging, amusement & recreation, and commercial. Public construction jumped 0.9 percent after a 0.3 percent increase in August. Private residential outlays are down 6.9 percent on a year-on-year basis, compared to down 5.2 percent in August. Private nonresidential construction was up 19.2 percent year-on-year in September versus 24.0 percent in August. Public outlays rose to an 11.6 year-on-year pace in September from 9.3 percent in August.
Today's report shows a continuation of earlier trends with housing declining and nonresidential construction positive. While nonresidential construction was slower in September, this may merely have been due to following such a strong month in August.
Construction spending rebounded 0.3 percent in August, following a 1.0 percent drop in July. Based on the recent upward nudge in housing starts in September, we may see a firming - albeit temporary - in residential outlays. Even if residential outlays edge up, that will be discounted. The key question may be how much will nonresidential outlays be offsetting the downtrend in residential outlays.
Construction spending Consensus Forecast for September 06: -0.3 percent
Range: -0.6 to +0.7 percent
![[Chart]](chart.gif)
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Construction spending has moderated significantly over the past year despite strenth in the housing market. Residential construction is not growing as rapidly as it did even though current levels are high. Nonresidential construction has begun to improve, but gains are still modest. |
| 2006 Release Schedule | ||||||||||||||||||||||||||
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