US construction spending up in November but PVC weakens

: Petrochemicals
24/01/02

Construction spending grew by 0.4pc to a seasonally adjusted annual rate of $2.05 trillion in November, with private investment driving the growth, according to the latest data from the US Census Bureau.

Even with increased spending in private residential construction, PVC demand faced its typical seasonal slowdown over the course of November as downstream buyers limited orders to prevent unnecessary inventory build. US producers were having to rely more on the export market to make up for falling domestic demand, a dynamic which continued into December. Argus' domestic PVC contract price was assessed 1¢/lb lower to 58.5¢/lb in November, roughly $1,290/t.

Total construction spending was 11.3pc higher than November 2022.
Total private construction spending was at a rate of $1.595 trillion, 0.7pc higher than October and 10pc higher than November 2022.
Private residential spending in November was 1.1pc higher than October and 3.7pc higher year-to-year, with monthly and yearly increases for both single-family and multifamily spending.
Private manufacturing spending grew 0.5pc from October to November, and 59.4pc from November 2022.
Private commercial spending was down 0.5pc from October to November but grew 4.2pc from November 2022.
Public spending was at a rate of $455bn in November, 0.7pc lower than October but 16.2pc higher than November 2022.
Spending on highway and street construction and maintenance grew 0.1pc from October to November and 15.2pc year-to-year.
Spending on the water supply and waste in November 2023 fell 1.5pc from October but grew 22pc from November 2022.

By Aaron May

US Construction Spending					$mn
	23-Nov	23-Oct	+/-%	22-Nov	+/-%
Total Spending	2,050,058.0	2,042,518.0	0.4	1,842,206.0	11.3
Total Private	1,594,950.0	1,584,392.0	0.7	1,450,489.0	10.0
Private Residential	896,758.0	887,278.0	1.1	865,170.0	3.7
Private Manufacturing	209,335.0	208,211.0	0.5	131,312.0	59.4
Private Commercial	127,286.0	127,900.0	-0.5	122,141.0	4.2
Total Public	455,108.0	458,126.0	-0.7	391,718.0	16.2
Total Water	70,077.0	71,144.0	-1.5	57,423.0	22.0
Total Highway/Road	135,790.0	135,606.0	0.1	117,877.0	15.2
Census Bureau

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