Business & Investment

November construction costs up 0.4%

Along Calculated risk above 1/03/2022 10:36:00 AM

From the Census Bureau report Its overall construction spending increased by 0.2%:

Construction spending in November 2021 was estimated at an annually adjusted $ 1,625.9 billion. 0.4% above the revised October estimate $ 1,618.8 billion. The November figures are 9.3 percent above the November 2020 estimate of $ 1,487.2 billion.
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Private spending has increased and public spending has decreased:

Private construction spending is seasonally adjusted at an annual rate of $ 1.2736 trillion, 0.6% above the October revised estimate of $ 1.2658 trillion. .. ..

The estimated seasonally adjusted annual rate of public construction spending in November is $ 352.3 billion, 0.2% below the October revision of $ 353 billion.

Click on the graph to see a larger image.

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

Housing spending is 17% above the peak of the bubble (nominal-no inflation adjustments).

Non-residential spending is 15% above the January 2008 bubble era peak (nominal dollar), but has been weak recently.

Public construction spending is 8% above its March 2009 peak.

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

Year-on-year, Private housing construction spending is up 16.3%.. Non-residential spending increased 6.7% year-on-year. Public spending is down 0.8% year-on-year.

Construction was considered an integral service in the early days of the pandemic in most areas and did not decline as rapidly as many other sectors. However, some of the non-housing sector is under pressure. For example, accommodations are down 30.7% year-on-year...

This fell short of the consensus expectation that spending would increase by 0.6%. However, construction costs for the past two months have been revised upwards.

November construction costs up 0.4% November construction costs up 0.4%

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