Nov. Construction Spending Growth Fastest since Aug.

(Neutral) The real value of construction put in place in November 2016 was $99,303 million, which was the first time below $100,000 million since May. However, compared with one year ago, this was an increase of 4.1 percent, which was the second fastest rate of growht since June 2016. This was the second month in a row that the 1/12 rate of growth accelerated. However, the annual rate of growth continued to decelerate. It was 6.2 percent in November, which was the slowest rate of growth since January 2014. We are still a number of months away from the annual rate of growth accelerating.

Residential construction spending has grown at a slower rate than total construction spending the last three months. However, the 1/12 rate of change accelerated to 3.0 percent from 0.5 percent in October. The annual rate of growth, now 7.0 percent, decelerated to its slowest rate since November 2012.

Despite the somewhat positive turn in the 1/12 rate of change, the change in the real 10-year treasury rate has started moving in a negative direction for future construction spending.