Nonresidential construction spending fell 0.1% on a monthly basis in January 2018, while year-over-year spending increased, according to an Associated Builders and Contractors (ABC) analysis of U.S. Census Bureau data released March 1. Nonresidential January spending totaled $732.9 billion on a seasonally adjusted annual rate, adding up to a 2.4% increase year over year.
Private nonresidential construction fell 1.5% for the month, while public sector nonresidential spending increased 1.9%. The largest year-over-year increases occurred in public safety (33.5%) and transportation (20.2%).
“Today’s data indicates that nonresidential spending continues to expand erratically and unevenly,” said ABC’s Chief Economist Anirban Basu. “On a monthly basis, nonresidential construction spending declined in January. While the decline was minimal, and may have been primarily attributable to freezing temperatures in much of the country, there has been a long-lived pattern of occasional spending setbacks in the context of broader expansion cycles. The result of the most recent spending setback is that nonresidential construction outlays are only 2.4% above year-ago levels.
“Interestingly, there is evidence of a reversal of fortune as spending picks up in certain public segments while flattening out in certain private ones,” said Basu. “With the housing market recovering, property tax and other forms of real estate tax collections have increased. This has positioned a growing number of public agencies to step up construction spending in education, public safety and other publicly financed categories.
“Meanwhile, there are growing concerns regarding excess inventory of commercial and office space in certain metropolitan areas,” said Basu. “This may help explain recent construction spending setbacks in a variety of privately financed construction segments. That said, there is little reason to believe that private construction will falter in 2018. Economic growth, including job growth, remains robust. Confidence is surging among many economic actors, including bankers and developers. The combination of capital and confidence should be enough to drive spending growth in most private segments as 2018 progresses.”
Related Stories
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
Market Data | Sep 6, 2023
Far slower construction activity forecast in JLL’s Midyear update
The good news is that market data indicate total construction costs are leveling off.
Giants 400 | Sep 5, 2023
Top 80 Construction Management Firms for 2023
Alfa Tech, CBRE Group, Skyline Construction, Hill International, and JLL top the rankings of the nation's largest construction management (as agent) and program/project management firms for nonresidential buildings and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Sep 5, 2023
Top 150 Contractors for 2023
Turner Construction, STO Building Group, DPR Construction, Whiting-Turner Contracting Co., and Clark Group head the ranking of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2023 Giants 400 Report.