Construction spending was flat in September, below the 0.1% gain expected, as residential and nonresidential construction saw gains. Nonresidential rose by 0.1% compared to a residential construction increase of 0.6%, data released by the Commerce Department Thursday morning showed.
Analysts surveyed by MNI had expected total construction spending to rise by 0.1% after a gain of 0.1% in August. August was revised up to 0.8%, while July was unrevised at 0.2% and June was unrevised at -0.7%.
Private residential construction rose by 0.6% in the month, following a 0.4% decline in August. Home building ex. new homes, also known as remodeling, saw a 0.1% increase, according to an MNI calculation.
Aso based on an MNI calculation, total new homes rose by 0.8%. Single-family building was down 0.8%, and multi-family building posted an 8.7% increase.
In addition to the increase in private residential, private nonresidential construction rose by 0.1% in September, driving the increase in total private construction. The main drivers of the category were increases in lodging +3.7%), education (+3.2%), and health care (+1.6%).
Following an upward August revision to a 2.2% gain, public construction spending fell by 0.9% in September.
The decline in public construction was driven by a 10.7% fall in offices, a 7.0% fall in residential construction, and declines in most nonresidential categories. This was partially offset by a 6.2% gain in commercial and a 1.2% gain in education.
State and local construction fell 0.5% in the month. Federal construction was also down 6.8%.
