2016 Economic Calendar
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Construction Spending  
Released On 2/1/2016 10:00:00 AM For Dec, 2015
PriorPrior RevisedConsensusConsensus RangeActual
Construction Spending - M/M change-0.4 %-0.6 %0.6 %0.3 % to 1.3 %0.1 %
Construction Spending - Y/Y change10.5 %8.2 %

Highlights
Held down by weakness in the nonresidential component, construction spending didn't get a lift at all from the mild weather late last year, rising only 0.1 percent in December following a downwardly revised 0.6 percent decline in November and a 0.1 percent contraction in October. Year-on-year, spending was up 8.2 percent, a respectable rate but still the slowest since March last year.

But there is very good news in the report and that's a very strong 0.9 percent rise in residential construction where the year-on-year rate came in at plus 8.1 percent. Spending on multi-family units continues to lead the residential component, up 2.7 percent in the month for a 12.0 percent year-on-year gain. Single-family homes rose 1.0 percent in the month for an 8.7 percent year-on-year gain.

Now the bad news. Non-residential spending fell 2.1 percent following a 0.2 percent decline in November. Steep declines hit manufacturing for a second month with the office and transportation components also showing weakness. Still year-on-year, non-residential construction rose 11.8 percent.

Rates of growth in the public readings are led by highway & streets, at a 9.4 percent surge for December and a year-on-year rate of plus 12.0 percent. Educational growth ended 2015 at 9.4 percent with state & local at plus 4.4 percent. The Federal subcomponent brings up the rear at minus 1.4.

Lack of business confidence and cutbacks for business spending are evident in this report but not troubles on the consumer side, where residential spending remains very solid and a reminder that the housing sector is poised to be a leading driver for the 2016 economy. Still, the weak December and revised November headlines are likely to pull down, at least slightly, estimates for revised fourth-quarter GDP which came in at plus 0.7 percent in last week's advance report.

Recent History Of This Indicator
Construction spending had been a strength for the economy until late last year, falling November's 0.4 percent with downward revisions cutting sharply into October and September gains. The Econoday consensus is calling for a respectable rebound for December, at a consensus plus 0.6 percent. Housing and construction have been showing moderately positive trends, good enough to contribute to overall economic growth.

Definition
The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.  Why Investors Care
 
[Chart]
Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong.
Data Source: Haver Analytics
 
 

2016 Release Schedule
Released On: 1/42/13/14/15/26/17/18/19/110/311/112/1
Release For: NovDecJanFebMarAprMayJunJulAugSepOct
 


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