U.S. construction spending likely quickened in September

Construction spending of the U.S. for September is scheduled to release today.

Powered by stepped-up spending on private residential dwellings (2.0%), the nominal value of new construction of Unites States put-in-place probably climbed by 0.8% in September, marginally eclipsing the above-consensus 0.7% gain recorded in expected to contribute to the headline increase, business spending on structures likely expanded by 0.5% during the reference period, boosting the cumulative advance over the summer quarter to 2.4%, states Societe Generale. 

Public outlays are forecast to be the only area of weakness in the upcoming report, contracting by 0.4% and reversing all but a fraction of August's reported rise. 

As pointed out previously, figures for the previous two months are subject to revision with the Census Bureau's report. As a result, it need to look cautiously very closely at any adjustments to July and August spending tallies before drawing conclusions on this report. The construction spending over the July-September span would be 9.4% annualized above the April-June average, after a 29.2% spring-quarter surge, says SocGen.