US construction spending for November 0.8% vs 0.5% estimate
October advanced by 0.9% (revised from 1.4% prior)
US construction spending for the month of November rose by 0.8%. That was higher than the 0.5% estimate. However the prior month was revised lower to 0.9% from 1.4% originally reported.
- Private construction spending was up by 1%. In October of the rise was 0.3%.
- Public construction was up 0.2%. Spending on state and local government construction projects rose 0.7% but federal government construction tumbled by -4.8%
- Nonresidential structures rebounded 0.9% in November after falling 0.2% in October
The private sector rose to the highest level since February 2017. The numbers support the idea that the homebuilding will support growth in the 4th quarter. Look for an increase in GDP estimates. The Atlanta Fed will release their most recent estimate for fourth-quarter GDP later this morning. Their last estimate came in at 2.8%.
With infrastructure the next major target for the Trump administration, there should be more of a push in the public sector spending (see flat line for that sector in the chart below).