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Macro Flash Report

Construction Spending

Takeaway:

October construction spending figures from late last week rose slightly for the second straight month, driven primarily by private residential and public spending. Now that the election is over, the final headwind is forward guidance in interest rate policy. Tomorrow’s FOMC rate decision, and Chair Powell’s press conference will hopefully bring further insight into how the committee expects that to develop.

Total, Private Residential, Private Nonresidential, & Public Construction Spending

In September, Construction Spending edged up by 0.1% month-over-month to a seasonally adjusted annual rate of $2.15 trillion, surpassing market expectations of no growth (0.0%) and follows an upwardly revised 0.1% increase in August.

  • Private construction spending remained flat, with residential construction rising 0.2% while nonresidential dipped -0.1%.
  • Public construction spending grew by 0.5%, driven by a robust 2.3% increase in residential projects and a 0.4% uptick in nonresidential spending.
  • On an annual basis, total construction spending was up 4.6% compared to September 2023.