Business & Investment

Construction costs up 0.9% in November

Along Calculated risk of 1/04/2021 10:13:00 AM

From the Census Bureau report Its overall construction cost has increased:

Construction spending in November 2020 was estimated at an annually adjusted $ 1,459.4 billion. 0.9% above the revised October estimate $ 1,446.9 billion. The November figure is 3.8 percent above the November 2019 estimate of $ 1,405.5 billion.
Emphasis added

Private spending has increased and public spending has decreased:

Private construction spending is seasonally adjusted at an annual rate of $ 1,111.8 billion, 1.2% above the October revised estimate of $ 1,998.6 billion. …

The seasonally adjusted annualized estimate of public construction spending in November was $ 347.6 billion, 0.2% below the revised estimate of $ 348.3 billion in October.

Click the graph to see the enlarged image.

This graph shows private and non-residential construction spending and public spending since 1993. Note: Nominal dollar, no inflation adjustment.

Housing spending is 3% below its previous peak.

Non-residential spending is 9% above its previous peak (nominal dollar) in January 2008, but has recently weakened.

Public construction spending was 7% above the previous peak in March 2009 and 33% above the austerity in February 2014.

Year-on-year construction costsThe second graph shows the year-on-year change in construction costs.

Private housing construction spending increased 16.1% year-on-year. Non-residential spending is down 9.5% year-on-year. Public spending is up 3.1% year-on-year.

Construction is considered an essential service in most areas and has not declined as sharply as in many other sectors, but non-residential and public spending (due to disaster relief) can be under pressure. there is. For example, accommodations are down 27% year-on-year, multi-retail is down 21% year-on-year, and offices are down 7% year-on-year...

This is a consensus expectation that spending will increase by 0.9%, with construction spending over the last two months revised slightly.

Construction costs up 0.9% in November Construction costs up 0.9% in November

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