ConDig (01-Feb-18).  US construction expenditure posted a moderate gain of 0.8% in November to a seasonally adjusted annual rate of $1.3 trillion from a revised $1.29 trillion in October, according to latest figures from the Commerce Department.

It comes as residential construction rose 3.4% to a seasonally adjusted annual rate of $548.4 billion from $539.3 billion the month prior, while nonresidential construction edged down 1% to a seasonally adjusted annual rate $751.5 billion from $759.3 billion.

Total public construction spending also edged 0.9% lower to $306.5 billion as education expenditure slipped 2% to $76.6 billion, while highway construction increased 1.7% to $93.3 billion.

Compared with a year earlier, total construction expenditure is up 3.4% and public construction spending is up 7%. 

Despite facing choppy waters in the wake of high labor and material costs, the housing sector continues to show signs of relative strength following newly released data by US Census Bureau that shows sales of newly built, single-family homes increased to a seasonally adjusted annual rate of 657,000 units in November after an upwardly revised October report.

The National Association of Home Builders (NAHB) said this was the highest sales pace since March 2018 and comes amid a rise in the affordable home sector, but on a year-to-date basis sales are down 7.7%.

“Solid job growth and growing household formations should support future demand for housing even as builders continue to address mounting affordability woes,” said NAHB chief economist Robert Dietz. 

“Builders are doing all they can to hold the line on costs to meet this demand, particularly at the entry-level market.”