US construction spending unexpectedly drops in September

US construction spending unexpectedly declined in September, according to the latest figures from the US Commerce Department.

Spending was down 0.4% on the month to a seasonally-adjusted $1.15bn, missing economists’ expectations for a 0.5% increase.

On the year, construction spending was 0.2% lower.

Residential spending rose 0.5% from the revised August estimate to a seasonally-adjusted annual rate of $453.7bn, while non-residential construction came in at an annual rate of $426.0bn, down 1% from the revised August figure.

Public construction spending dropped 0.9% from the revised August estimate to an annual rate of $270.3bn.

Pantheon Macroeconomics said: “September construction spending fell by 0.4%, well below the consensus +0.5%. But note the net revision was a hefty +1.1%, so overall the numbers are a bit stronger than expected.”