This Morning’s Key Economic Data - Construction Spending for September
November 2, 2009 – One of the key economic reports this morning was the Department of Commerce’s Construction data for September. The general sense from the report is that residential construction spending may have bottomed, and that non-residential construction may have further to decline. Overall, it looks like the construction sector is still facing significant headwinds.
Excerpt from Report
SEPTEMBER 2009 CONSTRUCTION AT $940.3 BILLION ANNUAL RATE
The U.S. Census Bureau of the Department of Commerce announced today that construction spending during September 2009 was estimated at a seasonally adjusted annual rate of $940.3 billion, 0.8 percent (±1.8%)* above the revised August estimate of $933.0 billion. The September figure is 13.0 percent (±1.9%) below the September 2008 estimate of $1,081.2 billion.During the first 9 months of this year, construction spending amounted to $715.2 billion, 12.1 percent (±1.3%) below the $813.3 billion for the same period in 2008.
PRIVATE CONSTRUCTION
Spending on private construction was at a seasonally adjusted annual rate of $613.9 billion, 0.5 percent (±1.1%)* above the revised August estimate of $610.9 billion. Residential construction was at a seasonally adjusted annual rate of $256.0 billion in September, 3.9 percent (±1.3%) above the revised August estimate of $246.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $357.9 billion in September, 1.8 percent (±1.1%) below the revised August estimate of $364.5 billion.
PUBLIC CONSTRUCTION
In September, the estimated seasonally adjusted annual rate of public construction spending was $326.4 billion, 1.3 percent (±2.9%)* above the revised August estimate of $322.1 billion. Educational construction was at a seasonally adjusted annual rate of $88.7 billion, 0.1 percent (±3.4%)* below the revised August estimate of $88.8 billion. Highway construction was at a seasonally adjusted annual rate of $85.5 billion, 1.0 percent (±7.8%)* above the revised August estimate of $84.6 billion.
