Construction spending reports from the Commerce Department remain a joke with wild month-to-month revisions. An error discovered earlier this year caused revisions dating back for a decade, some of which still have not been factored into prior GDP statements.
Public construction jumped 2.6% in October. Cleverly timed or just an accident? Question aside, numbers are so volatile, we don’t even know if that happened.
September as Initially Reported
October Construction Spending Revisions
- October revised September and the already revised August.
- September jumped to 1,166,509 from 1,150,005.
- August jumped to 1,166,513 from 1,154,388 in July.
- July remained at 1,160,407 (hooray).
- Total construction spending for September (from August) went from -0.4% to 0.0%.
- Total construction spending for August (from July) went from -0.4% to +0.5%.
These numbers will add a small amount to third quarter GDP estimates, assuming they are not revised away.
Mike “Mish” Shedlock