MNI: 5 Things We Learned From September Construction Spending>

By Sara Haire and Holly Stokes 

     WASHINGTON (MNI) - The following are the key points from the 

September construction spending report released Wednesday by the 

Commerce Department: 

     - Total construction spending was up 0.3% in September, above 

expectations for a flat reading. August was revised down to a 0.1% gain, 

while July construction was revised up slightly to a 0.9% decline.   

     - Private construction spending was down 0.4%. Despite a negative 

reading, private spending was still up 3.1% year-over-year. Private 

residential building saw a flat reading. Nonresidential building 

registered a 0.8% fall to its lowest since April 2016, led by a 3.6% 

drop in the large manufacturing sector.  

     - Residential homes ex new homes, calculated by MNI, which captures 

remodels, saw a 0.6% decline in September following a 0.1% increase in 

August. 

     - Public construction spending saw a large 2.6% gain. Power saw a 

large 11% gain and conservation and development saw a 12.6% gain in the 

month, as the large educational sector saw a 5.2% rise.

     - Federal spending was up 3.4%, while spending for State and 

Local saw a 2.5% increase.

 ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$] 

Housing starts fell 4.7% in the month, suggesting private residential 

building could be weak.

August construct spending +0.5% vs +0.4% expected, while 

July construct rev down to -1.2% (prev -0.6%), but June construct rev 

up to -0.8% (prev -1.4%). Private spending +0.4%, with private 

residential building +0.4% and nonresidential building +0.5%. Private 

1-family home construct +0.3% and multi-family +0.9%. Residential 

construct excluding new homes +0.5% from a rev down +0.3% in July, 

according to an MNI calculation. For private nonresidential construct, 

there were generally gains, partially offset by declines in 

communication and manufacturing. Public construct +0.7%, with state and 

local govt construct +1.1%, but Federal construct -4.7%. See MNI main 

wire.