Construction spending slipped -0.1% in October to a seasonally adjusted annual rate (SAAR) of $1,308.8 billion, with private construction spending falling -0.4% to a $998.7 billion SAAR and public construction spending increasing +0.8% to a $310.2 billion SAAR. Private construction slowed notably for single family residences (-0.5%) and power facilities (-2.4%), but increased for multifamily residences (+1.0%), and offices (+3.1%). Public residential construction rose +2.0% to a $6,108 billion SAAR, with public nonresidential construction increasing +0.7% to a $304.0 billion SAAR. On a yearly basis, construction spending was up +4.9%, with significant increases for water supply facilities (+23.0%), lodging (+18.9%), recreational facilities (+16.2%), and offices (+14.8%), and spending decreases for religious (‑9.1%), communication (-4.7%), and health care (-1.0%) facilities.

The trade deficit widened to a 10-year high of -$55.5 billion in October, and the deficit for September was revised to -$54.6 billion from -$54.0 billion. Goods exports fell -$404 million, with drops for soybeans (-$837 million), gold (-$838 million), aircraft (-$635 million), and automotive vehicles (-$234 million) being offset by increasing exports for oil (+$1,015 million), coal (+$273 million), and consumer goods (+$186 million). Imports increased +$454 million, led by increases in pharmaceuticals (+$1,485 million), other goods (+$811 million) and automotive vehicles (+$727 million), which were partially offset by drops for capital goods (‑$3,152 million) and oil (-$644 million). The largest trade deficit was with China, widening by -$686 million to -$38.2 billion, followed by the European Union (-$15.1 billion), and the largest surpluses were with South/Central America (+$3.7 billion), Hong Kong (+$2.4 billion), and Brazil ($0.7 billion).

November’s unemployment rate remained unchanged at 3.7% as 155,000 new jobs were created while the more comprehensive U-6 unemployment rate ticked up from 7.4% to 7.6%. Jobs were created in health care (32,000), manufacturing (27,000), transportation (25,000), and professional/business services (32,000), while gains in retail trade for general merchandise (39,000) and miscellaneous stores (10,000) were offset by losses for clothing (‑14,000), electronics (-11,000), and sporting goods/hobby/book stores (-11,000). The average workweek declined -0.1 hours to 34.4 hours/week and average hourly earnings increased +$0.06 to $27.35/hour (+3.1% Y/Y) for the year. Production/non-supervisory employees wages were up +$0.07 to $22.95/hour, gaining +3.2% Y/Y.