United States Construction Spending m/m

Construction Spending m/m reflects changes in the total value of construction works completed in the United States in the given month compared to the previous month.

The index survey covers construction of new residential and non-residential buildings, as well as reconstruction of existing buildings in private and public sectors. Calculation includes spending on the following types of projects:

• Construction of new buildings and structures
• Alterations, renovation, reconstruction and major replacements (for example, the complete replacement of a roof)
• Installation of engineering systems (plumbing, electrical work, elevators, air-conditioning, etc.)
• Site preparation and arrangement of the territory (roads, parking lots, utility connections, water supply, wharves and docks, gas pipelines, etc.)
• Installation of large industrial equipment not housed in a building, including storage tanks, refrigeration systems, etc.

The calculation takes into account cost of construction materials and cost of labor, of architectural and engineering work, overheads, interest, taxes paid during construction work and contractor's profit.

Construction projects do not include maintenance and repair of existing buildings, costs of production equipment and furniture, well drilling, land acquisition.

The indicator has a minimal direct impact on dollar quotes due to high volatility (seasonal changes, weather influence, etc.). Economists use it for near-term GDP forecast, since investments in construction are included in GDP calculation.