12/3/2014
By Jennifer Coombs

Firstly, construction spending rebounded in a major way, with particular strength in the public outlays and the private resident component. During the month of October, construction spending jumped by 1.1% following a 0.1% decline in September and handily beat economists’ estimates which called for a 0.6% boost. The increase in October was led by public outlays which rebounded 2.3% after a 1.6% drop in the month before. In addition, private-residential spending increased by 1.3% in October, after an increase of just 0.8% in September. However, private nonresidential construction spending declined by 0.1%, following an increase of 0.2% in the month before. On a year-ago basis, total outlays were up 3.3% in October compared to 3.9% in September. Odds are that the boost in construction spending will translate to higher Q4-2014 US GDP. Below is a two-year chart of month-over-month US construction spending.

Jennifer Coombs
Wall Street Strategies

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