Construction expenditures so far this year continue to run ahead of what was spent in 2016, with private construction accounting for most of the increase. Residential spending remains a top star, out-shown only by private sector commercial construction.
The U.S. Census Bureau said on Friday that the total amount of construction put in place in October was at a seasonally adjusted annual rate of $1.242 trillion and $111.814 billion unadjusted. The seasonally adjusted number was an increase of 1.4 percent from September and 2.9 percent year-over-year. During the year-to-date through October total spending was $1.029 trillion compared to $988.780 billion for the same period in 2016, an increase of 4.1 percent.
Private sector construction was at a seasonally adjusted rate of $949.946 billion compared to $943.846 billion in September and $920,097 billion in October 2016. These represent increases of 0.6 and 3.2 percent respectively. Overall private sector spending through October, $794.672 billion, was 6.6 percent higher than during the same period last year.
Residential spending had the second greatest increase in spending for the year through the end of October, in both total spending and private sector spending, up about 11 percent in both cases. For October, residential spending was at a seasonally adjusted rate of $517.703 billion, $267.246 of which was for single-family construction and was up 0.4 percent for the month and 7.4 percent compared to October 2016. Spending on new single-family construction rose 0.3 and 8.9 percent for the two periods.
On a non-adjusted basis, the private sector spent $46.875 on residential construction in October, up from 46.207 billion in September. Single family construction accounted for 24.315 billion of the October number, down slightly from September. Year-to-date through October, there was $433.161 invested in residential construction, $219.763 on single-family homes. These are increases of 11.2 and 9.0 percent respectively from the first 10 months of 2016. Only commercial construction beat out the residential increase; it was up 14.7 percent year-to-date.
A seasonally adjusted and annualized $291.592 billion was spent on all public construction during October, up 3.9 percent from September and 1.8 percent year-over-year. Residential construction expenditures declined by 3.0 percent and 10.3 percent for the two periods to $6.210 billion. Public spending on housing is down 5.2 percent over the first 10 months of 2017.