October’s seasonally adjusted annual rate of construction spending increased to $1,107.4 billion. This is 13% higher than a year ago when the construction spending estimate was at $979.6 billion in October 2014. This is 1% higher than the revised September estimate of $1,096.6 billion, which was revised up from a preliminary estimate of $1,094.2 billion. August’s estimate has been revised up again from $1,087.5 to $1,089.8 billion. This is the eighth consecutive month the annual rate has been above $1 trillion as it continues to creep even higher into pre-recession numbers.
Construction spending through the first 10 months of 2015 have totaled $888.1 billion. This is a 10.7% increase from the $802.3 billion spent from January through October 2014.
Private construction spending climbed to a seasonally adjusted annual rate of 802.4 billion for October. September’s initial estimate of $794.2 has been revised up to $795.8 billion. August’s estimate of $789.7 billion was revised down to $788.7 billion. Private nonresidential construction spending for October was at $403.4 billion, an increased from September’s revised estimate of $400.8 billion.
The seasonally adjusted annual rate of public construction spending was $304.9 billion in October. This is 1.4% higher than September’s estimate which was revised up from $300.0 billion to $300.8 billion. August’s estimate was revised up from $297.8 billion to $301.1 billion in the latest release from the U.S. Census Bureau.
At its current rate and based on what’s been spent so far through the first 10 months, we are still predicting that construction spending will top $1 trillion for the year. That’s roughly $56 billion needed to be spent on construction in November and again in December for that to happen, which shouldn’t be that hard to accomplish based on what we’ve seen so far this year. Last year there was a slight decrease in the annual rate from October to November, only to have it bounce back in December.