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Construction Spending decreased in December

Summary:
From the Census Bureau reported that overall construction spending decreased in December:Construction spending during December 2018 was estimated at a seasonally adjusted annual rate of ,292.7 billion, 0.6 percent below the revised November estimate of ,300.6 billion. The December figure is 1.6 percent above the December 2017 estimate of ,272.6 billion.The value of construction in 2018 was ,297.7 billion, 4.1 percent above the ,246.0 billion spent in 2017. Both private and public spending decreased:Spending on private construction was at a seasonally adjusted annual rate of 1.2 billion, 0.6 percent below the revised November estimate of 7.1 billion. ...In December, the estimated seasonally adjusted annual rate of public construction spending was 1.5 billion, 0.6 percent

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From the Census Bureau reported that overall construction spending decreased in December:
Construction spending during December 2018 was estimated at a seasonally adjusted annual rate of $1,292.7 billion, 0.6 percent below the revised November estimate of $1,300.6 billion. The December figure is 1.6 percent above the December 2017 estimate of $1,272.6 billion.

The value of construction in 2018 was $1,297.7 billion, 4.1 percent above the $1,246.0 billion spent in 2017.
Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $991.2 billion, 0.6 percent below the revised November estimate of $997.1 billion. ...

In December, the estimated seasonally adjusted annual rate of public construction spending was $301.5 billion, 0.6 percent below the revised November estimate of $303.5 billion.
emphasis added
Construction Spending decreased in December Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Private residential spending had been increasing - although has declined  recently - and is still 21% below the bubble peak.

Non-residential spending is 10% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 7% below the peak in March 2009, and 15% above the austerity low in February 2014.

Construction Spending decreased in DecemberThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is down 1%. Non-residential spending is up 3% year-over-year. Public spending is up 4% year-over-year.

This was below consensus expectations, however spending for October and November were revised up.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

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