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Value of New Construction Holds Steady in September but Shows Nice YOY Increase

Nov. 2, 2018
The September figure is 7.2% above the Sept. 2017 estimate of $1,240.4 billion.

Construction spending during Sept. 2018 was estimated at a seasonally adjusted annual rate of $1,329.5 billion, nearly the same as the revised August estimate of $1,328.8 billion. The September figure is 7.2% above the Sept. 2017 estimate of $1,240.4 billion. During the first nine months of this year, construction spending amounted to $982.9 billion, 5.5% above the $931.3 billion for the same period in 2017.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $1,020.4 billion, 0.3% above the revised August estimate of $1,016.9 billion. Residential construction was at a seasonally adjusted annual rate of $556.4 billion in September, 0.6% above the revised August estimate of $553.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $463.9 billion in September, 0.1% above the revised August estimate of $463.5 billion.

Multi-family construction saw the biggest month-to-month increase with a +8.7% increase to $64.2 billion. At $17.9 billion, transportation was up +18.9% over Aug. 2017, due in part, no doubt, to the dramatic increase in airport terminal construction.

Public construction. In September, the estimated seasonally adjusted annual rate of public construction spending was $309.1 billion, 0.9% below the revised August estimate of $312.0 billion, but +11% ahead of Aug. 2017. Educational construction was at a seasonally adjusted annual rate of $74.6 billion, 1.2% above the revised August estimate of $73.7 billion and +9.9% above the Aug. 2017 pace.