by Calculated Risk on 12/01/2006 10:36:00 AM

From the Census Bureau: October 2006 Construction at $1,178.4 Billion Annual Rate

The key is that nonresidential construction declined for the second consecutive month.

Nonresidential construction was at a seasonally adjusted annual rate of $308.2 billion in October, 0.7 percent below the revised September estimate of $310.2 billion.

Click on graph for larger image.

Residential construction spending peaked in December 2005, and the typical pattern is for nonresidential construction to peak 3 to 5 quarters after residential construction. It appears that nonresidential construction peaked in August 2006 - right on schedule.

The continued decline in residential construction spending was about as expected, and will continue at around this pace, at least through mid-2007, based on housing starts.

Residential construction was at a seasonally adjusted annual rate of $597.1 billion in October, 1.9 percent below the revised September estimate of %608.8 billion.