April nonresidential and multi-family construction spending up sharply

June 02, 2006 |

Construction spending jumped 1.7% in April on nonresidential building and multi-family job sites according to the monthly survey by the Census Bureau. The April increase was larger than month-to-month changes earlier this year even after spending totals for earlier months were revised higher from initial reports.

The increase in the nonresidential market was offset by a decline in the larger single family market.Overall, construction spending declined 0.1% in April from March.

The large increase in April was primarily for factories, hotels and offices, including large increases for chemical facilities where capacity expansion is always very late in the business cycle and for electronics facilities where the huge capacity surplus from the last recession has finally been absorbed.

Construction spending in the nonresidential building and multi-family markets is expected to increase 12% this year and 10% more in 2007 as a result of the recent pickup in project starts.Reed Construction Data reports that the value of starts is up 14.2% year-to-date compared to a year ago for nonresidential buildings.

 

 



Construction Spending

 

 

 



($millions, seasonally adjusted annual rate)

 

 



April '06


March '06


% change


YTD


% change

 

 

 



Apr. vs. Mar.


Apr. '06


06 vs. '05


Education


81,290


82,316


-1.2


81,897


9.6


Commercial (retail)


75,941


74,720


1.6


75,342


8.4


Multi-Family


60,325


59,629


1.2


59,505


16.7


Office


50,945


49,559


2.8


50,026


8.4


Health Care


39,248


39,164


0.2


38,978


10.4


Manufacturing


36,669


33,994


7.9


34,297


21.8


Amusement/Recreation


21,011


20,835


0.8


20,843


10.3


Lodging


15,883


14,490


9.6


14,307


17.4


Public Safety


10,855


11,040


-1.7


10,759


19.1


Religious


8,314


8,174


1.7


7,946


0.0

 

 

 

 

 

 



Total


400,481


393,921


1.7


393,898


11.6


Source: Census Bureau

 

 

 

 

 



and Reed Construction Data

 

 

 

 

 

Add new comment

Your Information
Your Comment

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Overlay Init