Highlights
Construction spending rose more than expected in December but November was not as strong as earlier estimated. Construction spending in December jumped another 1.5 percent after a 0.4 percent increase the month before (originally up 1.2 percent). Analysts projected a 0.5 percent increase for December.

The boost in December was led by a 3.3 percent surge in private nonresidential outlays after a 0.5 percent dip the month before. Residential spending rebounded 0.8 percent after a 0.3 percent decline. Public outlays rose 0.5 percent, following a 1.7 percent boost in November.

Within the private residential component, new one-family construction advanced 1.5 percent while the new multifamily subcomponent eased 0.3 percent after a 6.1 percent surge in November. Private nonresidential spending was led by a monthly 13.6 percent spike in manufacturing.

On a year-ago basis, overall construction posted a gain of 4.3 percent in December, compared to 0.1 percent the month before.

Overall, the construction sector is showing signs of improvement though still at low levels of activity. The broad-based gains in the private sector are moderately encouraging.

On the release, equity futures were little changed and up notably. ISM manufacturing posted at the same time, showing improvement and only a little short of expectations.

Market Consensus before announcement
Construction spending in November jumped 1.2 percent after slipping 0.2 percent in October. The November increase was led by a 2.0 percent gain in private residential outlays, following a 2.3 percent boost in October. Both the single-family and multifamily subcomponents showed strength. Public outlays rebounded 1.7 percent, following a 1.8 percent decline in October. Private nonresidential construction spending was unchanged in November after decreasing 0.6 percent the prior month.

2012 Release Schedule

Released On: 1/3 2/1 3/1 4/2 5/1 6/1 7/2 8/1 9/4 10/1 11/1 12/3 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct