December Construction Spending Hits the Spot

Once again, the private residential sector pulled construction spending up in December. Total construction levitated to a seasonally-adjusted estimate of $933.2 billion, 0.4% above the November revised estimate of $929.8 billion.

Although Wall Street had forecasted a slightly larger increase of 0.5%, December marked the sixth month that total construction outlays rose. Private residential outlays proved to be the most valuable player in hitching up construction rates, as spending shot up 0.9% to $502.2 billion.

Other increases in construction outlays included a 3% rise in education spending, a 3% rise in power spending, a 1.3% rise in sewage and waste disposal spending, and a 0.3% rise in highway and street spending. All other industry totals reported on by the Department of Commerce saw decreases in their total construction outlays.

Public Commercial outlays did see a 3.5% advance from November, while public health care sponsored a 0.5% increase.

Total private construction rose 0.3% in December to $712.4 billion, and total public construction rose 0.6% to $220.8 billion.