Construction Spending Grows Again in November

(Illustration courtesy of the U.S. Census Bureau)

Construction spending grew at a seasonally adjusted annual rate of $2,050 billion during November, 0.4% higher than in October, the U.S. Census Bureau reported Tuesday.

The November figure is 11.3% above the November 2022 total.

Construction spending amounted to $1,817 billion during the first eleven months of 2023, 6.2% above the same period in 2022.

Wells Fargo Economics, Charlotte, said single-family housing and manufacturing spending drove the increase.

“First, private single-family outlays have now picked up for seven consecutive months, reflecting the relative attractiveness of new construction amid scarce supply and tough affordability conditions in the existing home market,” Wells Fargo Economics said in their monthly analysis. “Second, the manufacturing construction rally appears to be counteracting the broader interest rate headwinds facing nonresidential construction.”

Census said residential construction was at a seasonally adjusted annual rate of $896.8 billion in November, 1.1% above the October figure. Nonresidential construction was at a seasonally adjusted annual rate of $698.2 billion in November, 0.2% above the October figure.