Construction spending rose to a seasonally adjusted annual rate of $971.0 billion in October after preliminary reports of back to back drops in August and September. The revised figure for September of $960.3 billion indicate a slight drop from August’s revised amount of $961.1 which ended up being higher than July’s number. October’s $971.0 billion is 3.3 percent higher than the October 2013 rate of $939.9 billion.
From January through October, total construction spending was at $800.6 billion which is 5.8 percent higher than the $756.4 billion spent during the first 10 months of 2013. If the current annual rate holds steady through the rest of the year, construction spending in 2014 will be 6.6 percent higher than last year.
According to the U.S. Census Bureau, private construction spending increased 0.6 percent in October to an annual rate of $692.4 billion. This marks the third month of increases in private construction spending with September’s annual rate being revised to $688.0 billion and August’s rate being revised up to $684.4 billion. Nonresidential private construction was down slightly from September’s revised rate of $338.9 billion to $338.6 billion in October.
Public construction spending was at $278.6 billion in October. September’s public construction spending annual rate was revised to $272.3 billion and August was upgraded to $276.6 billion.
Construction spending has been up and down over the past few months, but now that it is trending back up this late in the year it should be a good indication that we will outpace spending in 2013 and the industry will continue moving in the right direction.