Overall Construction Spending is Up...

I recently wrote about how architectural billings, a leading indicator for construction, has slowed. It has in specific market regions and sectors, but multi-family housing is holding strong. The most recent data on overall construction shows similar trends.

Residential construction spending is going strong. This is typically dominated by single-family housing, which is not the focus on my construction interest, but that is also considered a leading indicator for construction activities. Private non-residential construction spending lags the economy, so there's no surprise that it's been low.  Bill McBride from the Calculated Risk blog thinks it will pick up in 2014 based on his analysis of the AIA's ABI. Public construction was down in November after inching up from its April low water mark. It is currently at 2006 levels (or 2001 in real terms). This is not surprising given that many elected officials are pushing austerity measures.

The above figures are courtesy of Bill McBride at the Calculated Risk blog. His full write-up can be read here.