US: Another decline in construction spending - Wells Fargo

Construction spending in the US fell 0.1% in October. With revisions to prior months’ data, spending has declined for three consecutive months, noted analysts at Wells Fargo. They added that despite recent weakness, spending remains up 4.9% year-over-year.

Key Quotes: 

“Total spending fell 0.1% during October. Much of the monthly decline occurred in residential, which dropped 0.5%. Despite recent weakness, overall spending is up 4.9% year-over-year.”

“Home building continues to be sluggish. Single-family outlays fell 0.5% during the month and have declined for five straight months. The effects of recent hurricanes were not readily apparent, as home improvement spending declined 0.9%.”

“The affordability issues plaguing single-family markets continue to support multifamily construction.”