November construction spending data from the USA

  • Prior was +1.0% (revised to +0.3%)
  • Residential +0.2%
  • Nonresidential -0.8%
  • Single family +0.6%
  • Multi-family -0.7%
  • Home improvement +0.1%

That's a big negative skew for Q4 GDP. Hopes for something around 2.5% are dashed.

That's an absolutely wretched report. The market is focused on the ISM data but this one is bad.

Spending is still up 10.5% y/y so it's not time to worry about some kind of collapse but construction is one of the big pillars of the US economy over the past few years and without it, there is no way to get anywhere near 3% growth.