US construction sector spending holds up in September
Construction sector spending rose past forecasts in September, buoyed by stronger outlays by the public sector.
Total outlays grew by 0.3% month-on-month to reach $1.22trn, according to the Department of Commerce. Versus a year ago spending as ahead by 2%.
Economists had penciled in a dip for total spending of 0.3% on the month.
Private sector spending fell by 0.4% when compared to August to hit $942.7bn, but the decline was amply offset by a 2.6% jump in public sector outlays to $276.8bn.
Within the private sector residential investment was flat at $515bn but non-residential outlays dropped by 0.8% versus August to $427bn, amid large drops in the office, commercial and manufacturing segments.
Meanwhile, both residential and non-residential spending strengthened in the public sector, registering increases of 5.1% and 2.6%, respectively. In the latter of those two categories the biggest increases were seen in Educational and Transportation.
Total public outlays on construction increased by 2.6% to $277bn.
"Most of the reported increase was in the public sector, where spending fell sharply in the spring and summer. The 2.6% September rebound recovers only part of the cumulative 6.6% drop recorded between March and August, but we're happy to see it nonetheless," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Sheperdson also pointed out how the construction numbers were susceptible to "potentially" large revisions, although his forecast was for a clear rebound in spending over the course of the fourth quarter of 2017 and the first three months of 2018, thanks to rising architects' billings and a stronger housing market.