According to the U.S. Census Bureau, construction spending hit a seasonally adjusted annual rate of $975.0 billion in November. This is a slight decrease from the revised amount of $977.7 billion for October which was initially reported as $971.0 billion last month. September’s estimate was revised again from $960.3 billion up to $966.4 billion. With the exception of November, total construction spending has increased over the past several months once the revised figures are released and it could happen for November as well.
From January through November, total construction spending totaled $884.6 billion which is 5.7 percent higher than the $836.9 billion spent during the first 11 months of 2013. If the current annual rate holds steady through the rest of the year, construction spending in 2014 will be 7.0 percent higher than last year.
Private construction spending increased in November to $697.7 billion which is about 0.3 percent higher than October’s annual rate of 695.7 billion. This is the fourth consecutive month of increases in private construction spending.
Public construction spending was at $277.3 billion in November. October’s revised rate for public construction spending was at $282.0 billion. Public construction spending has been up and down the past several months with the spending rate back to about where it was in July.
At this point it is pretty clear that construction spending in 2014 will outpace what was spent in 2013. It will be a couple of more months before final numbers are in but as a reference total construction spending in 2013 was 5.7 percent higher than 2012 so a 7.o percent increase for 2014 is a good sign for continued growth in the construction industry for the new year.