Construction Spending is an economic indicator that measures the total value of construction work completed in the U.S.
It covers both private and public sectors, providing insights into the health of the construction industry.
The level of construction spending is also used to gauge the strength of the economy and the level of demand for goods and services.
What is Construction Spending?
The Construction Spending report provides data on spending in three major categories: residential, non-residential, and public construction.
- Residential construction covers single-family and multi-family homes.
- Non-residential construction includes commercial, industrial, and institutional projects.
- Public construction encompasses spending by federal, state, and local governments on infrastructure, education, healthcare, and other public projects.
The data is collected through surveys of construction companies 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 month-over-month or year-over-year change indicates an increase in construction spending, while a negative change signifies a decrease.
The report also provides a breakdown of spending by category, making it easier to identify trends and shifts in various sectors of the construction industry.
Why is Construction Spending important?
Construction Spending is an important indicator of economic growth.
High levels of construction activity typically signal a thriving economy, as increased spending on construction projects can lead to job creation, higher demand for raw materials, and a boost in overall economic activity.
A decline in construction spending may indicate economic weakness or a potential slowdown.
The Construction Spending report can influence monetary policy decisions, as policymakers use the data to assess the state of the economy and determine the appropriate level of interest rates.
The report is also closely watched by investors and analysts, as it can impact the stock market and other financial instruments tied to the construction industry.
Who publishes the Construction Spending report?
The Construction Spending report is published by the United States Census Bureau, a branch of the U.S. Department of Commerce.
When is the Construction Spending report released?
The report is published on a monthly basis, typically at the beginning of each month, and reflects the previous month’s data.
You can access the report on the United States Census Bureau’s website, where you can also find historical data and additional resources related to construction spending.