The latest figures show construction spending was down, but not out, in the month of November. Total spending declined 0.6% against market expectations for a decline of 1.4%. October's decline was also revised to just -0.4% from a previously reported drop of -1.2%.
The residential market continues to be a lead anchor, with private residential spending down 4.2% -- the biggest decline since July's -6.2% reading. Private nonresidential spending, on the other hand, increased 0.7% after a 0.4% decline in October. Within the private nonresidential sector, spending on lodging was up 0.7%, spending on office property rose 0.9%, spending on transportation projects jumped 3.2% and spending on power facilities climbed 5.3%.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXStnz1dYPy3Q6je_9EosPDTx95Q7n2kC2B8f34PbjS7pD7-A_jf2OHFy1PBi5XBzXxjlNcyqHphVgRyOqmujswm_Gu1Lgt-jDLrwhhKelmL6s1svj8vum61GX46ePEIn5kNkBnMOT1g/s400/cons2.png)
Looking at the longer trend (year over year rather than month over month), residential construction has gotten absolutely crushed. One area of huge growth has been manufacturing, which I have no explanation for. It looks like the media is confused as well. See if this commentary by Zacks makes any sense:
Construction in manufacturing also increased by 61.5% over the past year, as the manufacturing sector had been struggling during this economic recession, as evidenced by the ISM Manufacturing announcement on Friday, a 28 year low.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWWwoyHjHwXisV2IuU2K4nYSZHTbobUsSZTmZMKcTBTN7lJM7iszZywphJsAzoDkJRBm-yK7ckMDaAbb8tDvXAQImamqIW8PV3LwtdvL0ijjvVZ5DZrXkV-KzPpCJH9dhYv1M55sofMA/s400/cons1.png)
Source: Census
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