Residential Construction Spending Increased in October

The Census Bureau today released Construction Spending  for October 2010.

Residential construction spending includes remodeling, additions, and major replacements to owner occupied properties subsequent to completion of original building. It includes construction of additional housing units in existing residential structures, finishing of basements and attics, modernization of kitchens, bathrooms, etc. Also included are improvements outside of residential structures, such as the addition of swimming pools and garages, and replacement of major equipment items such as water heaters, furnaces and central air-conditioners. Maintenance and repair work is not included.

This report covers a broad spectrum of residential construction spending but does not provide countable data on how much new home building occured in the previous month. Furthermore, Construction Spending data is one of the last backward looking economic indicators to be released on a monthly basis. This means the market has already been given multiple opportunities to react to more timely information.

Excerpts from the Release...

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during October 2010 was estimated at a seasonally adjusted annual rate of $802.3 billion, 0.7 percent (±1.4%) above the revised September estimate of $797.1 billion. The October figure is 9.3 percent (±1.8%) below the October 2009 estimate of $884.7 billion.

During the first 10 months of this year, construction spending amounted to $684.7 billion, 11.2 percent (±1.0%) below the $770.6 billion for the same period in 2009.

 PUBLIC CONSTRUCTION

In October, the estimated seasonally adjusted annual rate of public construction spending was $320.5 billion, 0.4 percent (±2.1%) above the revised September estimate of $319.2 billion. Educational construction was at a seasonally adjusted annual rate of $75.0 billion, 1.7 percent (±3.0%) below the revised September estimate of $76.3 billion. Highway construction was at a seasonally adjusted annual rate of $87.0 billion, 1.2 percent (±5.0%) above the revised September estimate of $86.0 billion.

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $481.8 billion, 0.8 percent (±1.1%) above the revised September estimate of $477.8 billion.

Residential construction was at a seasonally adjusted annual rate of $229.6 billion in October, 2.5 percent (±1.3%) above the revised September estimate of $224.0 billion. Nonresidential construction was at a seasonally adjusted annual rate of $252.2 billion in October, 0.7 percent (±1.1%)* below the revised September estimate of $253.8 billion.

Here is recap of the data in table form...