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.
Construction Numbers
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.
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Mike “Mish” Shedlock
October, eh?
I’ll stick around for the November, December, and January “Trump Reflation Bond Market Carnage” numbers.
30 Year FRM highest since July ’15. Just in time for Sunday’s Italian Referendum.