Construction Spending

Construction Spending is an economic indicator that quantifies the total value of construction activities completed in the U.S. It encompasses both private and public sectors, offering insights into the construction industry's overall health. The level of construction spending is also utilized to assess the economy's strength and the demand for goods and services.

What is Construction Spending?

The Construction Spending report delivers data on expenditures across three primary categories: residential, non-residential, and public construction. Residential construction includes both single-family and multi-family homes. Non-residential construction covers commercial, industrial, and institutional projects. Public construction refers to spending by federal, state, and local governments on infrastructure, education, healthcare, and other public initiatives. The data is gathered through surveys of construction firms and public agencies, as well as from building permits and other related sources.

How to Read the Report

The Construction Spending report presents data as a percentage change from the previous month and as a year-over-year percentage change. A positive change, whether month-over-month or year-over-year, indicates an increase in construction spending, while a negative change signifies a decrease. The report also includes a breakdown of spending by category, facilitating the identification of trends and shifts within various sectors of the construction industry.

Why is Construction Spending important?

Construction Spending serves as a crucial indicator of economic growth. Elevated levels of construction activity generally suggest a robust economy, as increased investment in construction projects can lead to job creation, heightened demand for raw materials, and an overall boost in economic activity. Conversely, a drop in construction spending may signal economic weakness or a potential slowdown. The Construction Spending report can also influence monetary policy decisions, as policymakers rely on the data to evaluate the economy's condition and determine suitable interest rates. Investors and analysts closely monitor the report, as it can affect the stock market and other financial instruments linked to the construction sector.

Who publishes the Construction Spending report?

The Construction Spending report is published by the United States Census Bureau, a division of the U.S. Department of Commerce.

When is the Construction Spending report released?

The report is released monthly, typically at the beginning of each month, reflecting data from the previous month. You can access the report on the United States Census Bureau’s website, where historical data and additional resources related to construction spending are also available.