Construction spending last month was estimated at a seasonally adjusted annual rate of $1,598 billion, 0.2% above the revised September estimate of nearly $1,595 billion, according to a report from the U.S. Census Bureau.
The recent October number is 8.6% higher than the October 2020 estimate of almost $1,472 billion.
During the first 10 months of 2021, construction spending amounted to roughly $1,320 billion, 7.5% above the $1,230 billion for the same period last year.
Private construction spending was $1,245 billion, 0.2% below the revised September estimate of $1,248 billion. Residential construction was $774.7 billion in October, 0.5% below the revised September estimate of $778.6 billion.
Nonresidential construction was at a seasonally adjusted annual rate of $470.3 billion, 0.2% higher than the revised September estimate of $469.4 billion.
October’s estimated seasonally adjusted annual rate of public construction spending was $353 billion, 1.8% above the revised September estimate of $346.8 billion.
Educational construction was at a seasonally adjusted annual rate of $82.2 billion, 0.2% than the revised September estimate of $82 billion.
Highway construction was at a seasonally adjusted annual rate of $102.5 billion, 2.4% above the revised September estimate of $100.1 billion.
Nonresidential construction spending was up 0.9% in October, according to Associated Builders and Contractors, which provided an analysis of the Census Bureau data.
On a seasonally adjusted annualized basis, nonresidential spending was $814.2 billion for the month.
In 13 of the 16 nonresidential subcategories, spending was up monthly, and spending in the commercial subcategory was virtually unchanged for the month.
Private nonresidential spending was up 0.2%, while public nonresidential construction spending increased 1.8% in October, according to the ABC analysis.
“On the surface, there is much to be encouraged by in October’s construction spending data,” ABC Chief Economist Anirban Basu said. “Nonresidential spending is now at its highest level since July 2020 and has rebounded 3.1% since bottoming out in June 2021. Nonresidential spending expanded meaningfully for the month and those gains were spread across most subsectors. Data characterizing the two prior months were upwardly revised by a combined $27 billion, or 1.7%.”
Overall, Basu said 2022 “should be an excellent year for nonresidential construction.”