Monthly Spending Up 0.9 Percent To Highest Level In 10 Years
The latest Commerce Department data shows that US construction spending climbed in November, up 0.9 percent from October, which saw a 0.6 percent increase in construction spending. The AP reported that November’s spending increase pushed total construction “to a seasonally adjusted annual rate of $1.18 trillion, the highest point since April 2006.”. The increase “reflected solid gains in home construction, nonresidential building and government construction activity.” Looking forward, economists say construction “will continue to show gains in 2017, reflecting a strong job market and low unemployment.” Reuters reported that November’s construction spending represented a 4.1 percent increase from November 2015, and was a bigger increase than economists had expected. Looking at specific data for the month, private construction project spending rose 1.0 percent to its highest since July 2006. This was prompted by both home renovations and the construction of new single-family homes. Meanwhile, private nonresidential projects like roads, hospitals, and factories saw a 0.9 percent spending increase in November after seeing a 1.5 percent spending decline in October. Public construction also had a positive month in November, with spending on such projects up 0.8 percent to the highest reported since March.
What This Means For Small Businesses
Small business owners have been looking for positive indications that the US economy is picking up steam. The latest US construction spending data suggests that the job-creating construction industry saw signs of life during Q4 2016, and this in turn may help to boost the overall economy headed into 2017.
RTT News also covered the latest US construction spending data.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.