November construction spending, job losses were widespread; wage increases diminish

Construction spending fell 0.6 percentin November to a seasonally adjusted annual rate of $900 billion, down 13 percent from November 2008 and the lowest total in six years, the Census Bureau reported on Monday. Private nonresidential spending was flat for the month but down 21 percent compared to a year earlier. Private power construction (power plants, renewable power, transmission lines, oil and natural gas facilities) climbed 2.7 percent for the month and 8.9 percent year-over-year. But the 10 other private categories posted steep year-over-year declines, ranging from manufacturing, 0.1 percent for the month,-7.0 percent for the year; to private office, -2.2 percent and -39 percent; commercial (retail, warehouse and farm), -1.0 and -41 percent; and lodging, -1.5 percent and -46 percent. Private residential spending fell 1.6 percent and 19 percent, the first time in several years that residential outperformed nonresidential over a 12-month span. New single-family construction increased for the sixth straight month, 1.3 percent, but was down 25 percent from a year earlier. New multifamily was off 4.1 percent and 44 percent, and improvements fell 3.9 percent and 2.8 percent. Public construction spending slipped 0.4 percent for the month but climbed 2.7 percent from November 2008. The two largest public categories were mixed: highway and street, -2.9 percent and 5.7 percent; and educational, -4.4 percent and 12 percent, according to a Jan. 5 Data DIGest report.

Read full article