Last month was revised to +0.1% vs -0.2% prior
The US construction spending came in down -1.0%. That was the largest decline since April 2016. The expectation was for a gain of 0.6%.
The prior month came in at +0.1%. That was revised higher from -0.2%.
Private construction up 0.2% to 911.6 billion. Residential construction was up 0.5%. Non residential construction was unchanged.
Public construction fell by -5.0% on the month (largest decrease since March 2002) with residential down -15.1% and non residential -4.7%.
The public sector was particularly hurt by large declines in spending for highways, education, transportation, sewage, public safety and health care. Phew. Will those large declines be reversed later by Pres. Trump? Well of the declines, state and local spending fell 4.8% while federal govt outlays dropped by 7.4%. The S&L piece might have a more difficult time of it unless we get the 3% growth the president expects and that increases the taxes collected. Federal govt spending will hinge on the budget and willingness to massage the numbers to increase the spending. We will see, but for this month, not a good number.
