Free Trial

MNI DATA ANALYSIS:US October Construction Spending Jumps 1.4%>

--Residential Excluding New Homes Up 1.4%; New Homes -0.1%
--Total Private Spending Up 0.6%; Public Surges 3.9%
By Kevin Kastner and Holly Stokes 
     WASHINGTON (MNI) - Construction spending was up 1.4% in October, 
well above expectations, fueled by a 3.9% jump in public construction, 
the largest in three years, data released by the Commerce Department 
Friday morning showed. 
     Private construction spending rose 0.6% in October following a 
declines in the previous three months. 
     Analysts had expected construction spending to rise 0.5%, adding to 
a 0.3% rise in September. With the latest data, September construction 
was unrevised at that 0.3% increase, but August spending was revised up 
to a 0.5% increase from the 0.1% rise previously reported, a positive 
for the next revision to third quarter GDP. 
     Private residential construction spending was up 0.4% in the month, 
but total new home building fell 0.1% based on an MNI calculation. 
Single-family building rose 0.3%, while multi-family building posted a 
1.6% decline from September. Residential construction excluding new 
homes, which captures remodelling was up 1.4% based on an MNI 
calculation. This followed a 1.1% decline in September. 
     Private nonresidential construction was up 0.9% in October after 
declines in the previous four months. There were increases in office, 
lodging and manufacturing construction, but declines in power and 
commercial. 
     The data suggest that fixed investment started off the fourth 
quarter ahead of the previous quarter's average. 
     The 3.9% jump in public construction reflected a 11.1% surge in 
Federal Government spending, also the highest since October 2014, while 
state and local building rose 3.3% in the month. The data suggest a 
stronger reading for government spending to start the fourth quarter. 
     ** MNI Washington Bureau: 202-371-2121 ** 
[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$] 

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.