WASHINGTON — Construction spending was down 0.1% in October, below the 0.4% gain expected, as private residential and nonresidential construction both saw declines. Nonresidential fell by 0.3% compared to a residential construction decrease of 0.5%, data released by the Commerce Department Monday morning showed.
Analysts surveyed by MNI had expected total construction spending to rise by 0.4% after a flat reading in September. September was revised down to a 0.1% decline, while August was revised down to a 0.4% decline and July was unrevised at a 0.2% gain.
Private residential construction fell by 0.5% in the month, following a 0.1% gain in September. Home building ex. new homes, also known as remodeling, saw a 0.9% decrease, according to an MNI calculation.
Also based on an MNI calculation, total new homes fell by 0.3%. Single-family building was fell 0.5%, and multi-family building posted a 1.0% increase.
In addition to the decrease in private residential, private nonresidential construction fell by 0.3% in October, driving the decrease in total private construction. The main drivers of the category were decreases in power (-2.4%), manufacturing (-1.0%), and amusement and recreation (-1.6%).
Following a downward September revision to a 1.5% decrease from a 0.9% decline, public construction spending rose by 0.8% in October.
The gain in public construction was driven by a 9.5% gain in commercial, a 5.4% gain in offices, and 3.6% gain in public safety. This was partially offset by an 8.6% decline in conservation and development, and a 1.1% decrease in transportation.
State and local construction was up 0.5% in the month. Federal construction was up 3.7%.
