U.S. Construction Spending Continues Monthly, Yearly Gains

The latest monthly construction spending report from the U.S. Census Bureau showed continued gains in that sector on both a monthly and year-over-year basis, including a hefty upward revision in October’s increase.

The report stated that total construction spending during November was estimated at a seasonally adjusted rate of $2.0501 trillion, up 0.4% from October’s revised estimate of $2.0425 trillion. The September to October monthly gain was revised up considerably from 0.6% to 1.2%.

Year-over-year, November’s figure was up 11.3%, while spending through the first 11 months of 2023 ($1.817 trillion) was up 6.2% from the same period in 2022.

November spending on private construction was at a seasonally adjusted rate of $1.595 trillion, up 0.7% from October’s revised figure. Residential construction was up 1.1% vs. October, while nonresidential was up 0.2%.

November spending on public construction totaled $455 billion, down 0.7% vs. October. Educational construction totaled $99.2 billion, down 0.3% vs. October, while highway construction totaled $136 billion, up 0.1%.

Total November spending on manufacturing construction totaled $209.8 billion (seasonally adjusted), up 0.5% from October and up 59.1% year-over-year.

A Dec. 13 analysis of U.S. Labor Bureau Producer Price Index data by Associated Builders and Contractors found that November construction materials prices fell by 0.3% vs. October. Nonresidential construction input prices likewise dipped 0.3%. ABC noted that inputs to construction ended November still nearly 39% higher than at the start of the COVID-19 pandemic, while overall construction input prices were 0.8% lower year-over-year.

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