OCTOBER CONSTRUCTION SPENDING FALLS 0.8%, PRIVATE NONRESIDENTIAL FALLS FOR FIRST TIME IN OVER A YEAR
October construction spending fell 0.8%, more than the 0.3% decline most analysts expected. The September increase in spending was revised down from a 0.3% increase to a 0.2% increase, but the August change was revised upward from a 0.2% decline to a 0.4% increase. Private construction expenditures fell 1.4% in October following a revised 0.1% decline in September. Private residential construction fell 2%, that was its twentieth consecutive decline and the largest since July. Nonresidential private construction fell 0.5% in October, its first decline in over a year. Large declines in construction of power and manufacturing facilities and less construction of recreation facilities overcame continued strength in the building of lodging, office and educational facilities. Public construction rose 0.8%. Federally funded construction rebounded with an 8.2% increase after a 7.5% decline the previous month and state and local construction rose 0.3%. On a year-over-year basis the total value of construction spending is 0.6% lower than in October 2006 although nonresidential construction has increased 16% while residential construction spending has fallen 16%.