Total construction spending rose 0.2 percent in September, the second consecutive monthly increase. Prior months’ data were revised downward. Residential outlays rose 0.7 percent and nonresidential fell 0.1 percent.

Residential Outlays Show Improvement

• Construction spending rose 0.2 percent in September to a $787.2 billion annual pace, but fell 1.3 percent on a year-ago basis. Private residential outlays rose 0.9 percent with much of the increase in home improvements, which were up 1.4 percent. Single-family and multifamily also rose in September and reinforces the gain in builder sentiment. In fact, the NAHB housing market index rose four points in October to 18.

Private Nonresidential Outlays Continue to Grow

• Private nonresidential construction spending is now up 7.4 percent from year-ago levels with power and manufacturing leading the way. Manufacturing, which includes data centers, will likely continue to grow as firms invest further in data storage and management. Public spending, however, fell 0.6 percent. As it relates to third quarter economic growth, assumptions made by the BEA were in line with actual data.

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