Construction Spending: Moderating with positive revisions

September 1, 2016
Bottom Line: Construction was unchanged, below expectations, but saw strong upward revisions to July data and is sill modestly above its year ago levels. Construction in the manufacturing sector rebounded sharply while gains in office construction moderated. Public construction fell and is now moderately below its year ago levels. Overall, construction spending is now growing below trend with residential construction growing just below 2% year-over-year. Construction Spending FELL, rounded to unchanged in July, compared with market expectations for an increase of 0.5%. The June estimate was revised moderately higher from -0.6% to 0.9%, while the May, estimate was revised modestly higher from -0.1% to 0.1%. Construction spending is now 1.5% ABOVE its year ago level but still 4.3% below its March 2006 peak. Residential Construction ROSE by 0.3%, Homebuilding is now 1.9% ABOVE its year ago level. Nonresidential Construction ROSE by 1.7%. Nonresidential construction growth is now 7.1% ABOVE its year ago level. Public Construction FELL by 3.1%, and is now 6.5% BELOW its year ago level.
Article by contingentmacro