• 20 hours New Study Equates Luxury Cars With Low Self-Esteem
  • 23 hours Rio Tinto To Spend $1 Billion To Reduce Its Carbon Footprint
  • 2 days The Ultra-Wealthy Lost $140 Billion In One Day
  • 2 days Three Energy Casualties In The Coronavirus Crisis
  • 3 days Markets Crumble As Coronavirus Panic Peaks
  • 3 days Cobalt May Be The Key To Clean Hydrogen Fuel
  • 5 days How Taxpayers Are Bankrolling The EV Revolution
  • 6 days The Coronavirus Is Crushing China’s Car Market
  • 7 days Fighting For Survival In The Streaming War
  • 8 days Want A Job? Forget About A Bachelor’s Degree
  • 8 days Another Major Car Maker Is Backing Hydrogen
  • 9 days Are Americans Finally Sold On Soccer?
  • 9 days Is The Tech Bubble About To Burst?
  • 10 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 10 days What Web Traffic Trends Can Tell Us About The World
  • 10 days Miners Face Greater Headwinds
  • 11 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 12 days Goldman Slashes Oil Price Forecast By $10
  • 13 days Tesla Raises $2 Billion In Share Selloff
  • 14 days What The T-Mobile Takeover Of Sprint Really Means For Markets
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Construction Spending Shows Serious Signs of Rolling Over

 
 
Construction spending rose 0.3% in September vs an Econoday consensus of 0.0%. However, the Census Bureau revised August from a 0.5% gain to a 0.1% gain. Effectively, the September boost was about 0.1% from August as initially reported. Close inspection shows serious signs of weakness.

Econoday Commented:

The non-residential sector gets a downgrade in today's construction spending report where the headline increase, at 0.3 percent in September, nevertheless beats the consensus by 3 tenths. Private non-residential spending, however, fell a steep 0.8 percent following a sharply downward revised 0.7 percent decline in August. Year-on-year, this reading is down 3.8 percent with weakness most evident in manufacturing and office building that offsets gains for commercial building.

The residential side, though unchanged in September, shows much more strength with a year-on-year rise of 9.6 percent. Spending on both new single-family and new multi-family homes actually increased in the month, up 0.2 and 0.6 percent respectively, but spending on home improvements fell back 0.6 percent.

Public spending improved in the month led by a 5.2 percent gain for educational building. Highway & street spending rose 1.1 percent in the month but the yearly decline is still steep at 7.4 percent. Both Federal and state & local spending rose in the month but are down in the low single-digits on the year.

Total Construction Spending

Commercial Construction

Residential construction peaked in February of 2006 at $698,903 million. Today residential construction is at $521,445 million, a decline of 25.4% despite 11.5 years of recovery.

Non-residential construction peaked at $714,495 million in October of 2008. It exceeded that total from June 2016 thru May 2017.

Commercial construction has still not topped the $98,845 million high in February of 2008. Commercial construction spending has declined every month since the the May 2017 rebound peak.

Commercial construction includes office space and retail stores, both drivers of job growth. Every Walmart that goes up creates construction job, stocking jobs, and permanent employees to man the stores. Weekly shipments crate trucking jobs.

Residential and non-residential construction show signs of rolling over, with obvious implications. If so, don't count on hurricanes to save the day.

By Mike Shedlock

Back to homepage

Leave a comment

Leave a comment