Construction Spending Increases 1.8% from October 2013

According to the Census Bureau, the value of construction put in place in October 2014 was $89,644 (millions of real dollars). Compared to one year ago, spending in October was up just 1.8%. The month-over-month rate of growth has accelerated the last two months. However, the current rate of growth is still far below what it was in the first quarter of 2014. As a result of the relatively slower month-over-month growth, the annual rate of growth has decelerated since its peak in June 2014.

Residential construction spending, which makes up about 33% of total construction spending, is growing at about the same annual rate as total construction spending. However, its annual rate of growth has slowed much, much faster over the last year. Also, its month-over-month rate of change has actually contracted the last three months. 

Real construction spending is a good leading indicator for construction materials, hardware, and HVAC industrial production.