Monthly Change for October
Official Release: PDF

From the Release: "The U.S. Census Bureau of the Department of Commerce announced today that construction spending during October 2008 was estimated at a seasonally adjusted annual rate of $1,072.6 billion, 1.2 percent (±1.4%)* below the revised September estimate of $1,085.7 billion. The October figure is 4.6 percent (±1.9%) below the October 2007 estimate of $1,124.2 billion. During the first 10 months of this year, construction spending amounted to $906.3 billion, 5.7 percent (±1.4%) below the $960.9 billion for the same period in 2007."

Monthly Change for September
Official Release: PDF

Construction outlay numbers for September was better than expect although it did point to a fall in spending. Also, the previous release of a flat reading was revised up to a 0.3% increase. The residential component was revised to 1.9% from the 0.3% originally seen. However this component saw a -1.3% reading for September. On the year residential construction spending is down 27.1% and is still the major drag on the overall figures.

From the release: "The U.S. Census Bureau of the Department of Commerce announced today that construction spending during September 2008 was estimated at a seasonally adjusted annual rate of $1,060.1 billion, 0.3 percent (±1.6%)* below the revised August estimate of $1,063.5 billion. The September figure is 6.6 percent (±2.1%) below the September 2007 estimate of $1,134.9 billion.

During the first 9 months of this year, construction spending amounted to $807.3 billion, 6.2 percent (±1.4%) below the $860.5 billion for the same period in 2007."

Monthly Change for August
Provided by: Census Bureau
Official Release: PDF

US construction spending performed better than expected in August. Total spending was flat, but July's figure was revised sharply lower. Residential outlays saw a rare increase and offset a dip in commercial building. Residential spending is still 27.9% lower in August on an annual basis, as builders are reluctant to build new homes as inventories are way up and new homes are not selling well. That was apparent in the most recent new home sales figure which saw August's sales down 11.5%.

From the Release: "The U.S. Census Bureau of the Department of Commerce announced today that construction spending during August 2008 was estimated at a seasonally adjusted annual rate of $1,072.1 billion, nearly the same as (±1.4%)* the revised July estimate of $1,071.8 billion. The August figure is 5.9 percent (±1.9%) below the August 2007 estimate of $1,138.8 billion. During the first 8 months of this year, construction spending amounted to $713.5 billion, 5.9 percent (±1.4%) below the $758.1 billion for the same period in 2007."

Monthly Change for July
Provided by: Census Bureau

June y/y: -5.9%
Annual Rate: pr. $1,081.1B

Construction spending fell 0.6% in July, as the housing slump continues unabated. Its the largest decline since February. In a bit of good news from the release, June's figure was revised up to show a 0.3% increase compared to a 0.4% decline that was originally stated.

The Dollar weakened slightly following the release, as the ISM Manufacturing Index, which came out concurrently hit expectations. Still, the Dollar had a strong overnight session and at 10:10 AM was still higher compared to the Euro, Yen and Pound. 

Total residential construction decreased 1.7%, while total non-residential increased 0.4%. Total private construction was down 0.4%, while the public sector saw -0.2% in constrcution spending. The story is the same here as it has been for months. Residential construction is declining while non-residential industries are sustaining. 

Spending on construction fell 0.4% in May as residential construction spending fell 1.6% as it did in April. Non-residential construction spending increased 0.3%. Private sector spending dropped by 0.7%, versus a publich sector increase of 0.4% in May. Construction activity has shrank since December and shows no bottom yet. There is still a hefty inventory of unsold homes in the market.

Down 1.1%, total spending for construction decreased to an annual rate of $1.124trillion. The larger than expected decline mainly came from the residential sector, which was down 4.5% in March, and down 19.7% on the year. Non-residential spending increased 1.3% in March. Spring is suppose to be a recovery period for the housing market. So far this Spring, any signs of recovery have been short-lived, and the slowdown does not seem to be decelerating. Housing starts, building permits, pending home sales continue to tumble to historic lows. Economists and analysts are seeing no recovery until 2009.