Construction spending flat in November

Wells Fargo Research Team Wells Fargo

Summary

Elevated rates continue to constrain construction

Total construction spending was essentially unchanged in November as a modest gain in residential outlays helped offset a small decline in nonresidential spending. The residential rise was driven by growth in single-family and home improvement outlays, reflecting home builders' ability to offer incentives to shore up demand and low supply in the existing home market. Although data center, power and highway & street outperformed, most other nonresidential segments weakened during the month. All told, total construction spending continues to moderate as elevated interest rates and tight credit conditions weigh on activity.

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Wells Fargo Research Team

Wells Fargo

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