Construction spending is an economic indicator that measures the monthly expenditures for new construction projects in different sectors, such as residential, non-residential, and public. Construction spending reflects the level of activity and investment in the construction industry, which is closely linked to the overall health of the economy. Construction spending can also influence other indicators, such as GDP, employment, inflation, and interest rates.
Construction spending is calculated by the U.S. Census Bureau, which provides monthly estimates of the total dollar value of construction work done in the U.S. The survey covers construction work done each month on new structures or improvements to existing structures for private and public sectors. The data is collected from a sample of construction companies, contractors, and owners, and is adjusted for seasonal variations and inflation.
Construction spending can be divided into three main categories: residential, non-residential, and public. Residential construction spending includes single-family and multi-family housing units, as well as improvements to existing housing units. Non-residential construction spending includes commercial, industrial, and institutional buildings, such as offices, factories, schools, and hospitals. Public construction spending includes infrastructure and facilities owned and financed by federal, state, and local governments, such as highways, bridges, airports, and schools.
Construction
Construction Spending image
