flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

Nonresidential construction spending continues to grow through mid-summer

Building Sector Reports

Nonresidential construction spending continues to grow through mid-summer

Job growth, increased business travel spending, and the rebounding U.S. have all aided the construction sector, says ABC


By Associated Builders and Contractors | September 1, 2015
Nonresidential construction spending continues to grow through mid-summer

Construction of Minneapolis's Downtown East. Photo: Tony Webster/Creative Commons

Nonresidential construction spending expanded 0.5% in July and is up 12.7% on a year-over-year basis, according to a Sept. 1 release by the U.S. Census Bureau. This represents the strongest year-over-year percentage growth in spending since April 2008. On a seasonally adjusted, annualized basis, nonresidential construction spending totaled $696.1 billion in July, which is the best reading since March 2009. Additionally, June's estimate was upwardly revised 0.9% from $686.9 billion to $692.8 billion.

"A number of forces are at work and are conspiring to help push nonresidential construction spending higher," said Associated Builders and Contractors Chief Economist Anirban Basu. "Perhaps most importantly, job growth remains robust, helping to drive down office and other vacancy rates, prompting more construction starts. Recreational and business travel spending has been trending higher, helping to support construction in the lodging and amusement categories on a year-over-year basis. A rebounding U.S. auto sector and expanding aerospace industry have also helped to fuel spending. State and local government capital outlays also appear to be recovering and were surprisingly strong during this year's second quarter. In addition, materials prices have been in general decline, which has helped justify moving forward with construction projects."

 

Courtesy Associated Builders and Contractors

 

Seven of 16 nonresidential construction sectors experienced spending increases in July on a monthly basis:

  • Power-related construction spending grew 2.8% for the month, but has declined 11.9% on a year-over-year basis.
  • Manufacturing-related construction spending grew 4.8% in June and is up an astonishing 62.1% for the year.
  • Office-related construction spending expanded 1.2% in July and is up 26.1% from the same period one year ago.
  • Conservation and development-related construction spending expanded 11.2% for the month and is up 15.7% on a yearly basis.
  • Religious spending grew 5.7% for the month and is up 7.3% from the same time last year.
  • Communication-related construction spending inched 0.1% higher for the month and is up 14.2% for the year.
  • Sewage and waste disposal-related construction spending grew 1.6% for the month and has expanded 11.3% on a 12-month basis.

Spending in nine nonresidential construction subsectors fell in July on a monthly basis:

  • Education-related construction spending fell 2.2% for the month, but is up 3.6% on a year-over-year basis.
  • Commercial construction spending fell 1.5% in July, but is up 5.5% on a year-over-year basis.
  • Health care-related construction spending fell 0.5% for the month, but is up 6.4% for the year.
  • Lodging-related construction spending fell 0.7% on a monthly basis, but is up 40.3% on a year-over-year basis.
  • Spending in the water supply category fell 4.8% from June, but is up 4.3% on an annual basis.
  • Highway and street-related construction spending dipped 0.2% lower in July, but is up 9.7% compared to the same time last year.
  • Amusement and recreation-related construction spending fell 5.3% on a monthly basis, but is up 34.3% from the same time last year.
  • Construction spending in the transportation category fell 0.2% on a monthly basis, but has expanded 7.9% on an annual basis.
  • Public safety-related construction spending fell 2.8% on a monthly basis and is down 4.9% on a year-over-year basis.

To view the previous spending report, click here.

Related Stories

Building Team | Sep 6, 2016

Letting your resource take center stage: A guide to thoughtful site selection for interpretive centers

Thoughtful site selection is never about one factor, but rather a confluence of several components that ultimately present trade-offs for the owner.

Building Sector Reports | May 10, 2016

Underwater restaurant to open in the Maldives

Up to 24 deep-sea diners will be protected by an acrylic arch and an acrylic end window, allowing for panoramic views of the Indian Ocean above and the coral reef below.

Building Team | May 3, 2016

Piazza in San Francisco will feature a 92-foot stainless steel statue

Made of 2,500 seamlessly-welded panels, Venus will be the centerpiece of a new public piazza containing other works of art.

Building Sector Reports | Aug 26, 2015

JLL: Can you recognize these major cities?

Clues help players name eight metropolises in The Global Cities Quiz

Architects | Aug 19, 2015

Despite dip, architecture billings remain strong

The American Institute of Architects (AIA) reported the July ABI score was 54.7, down a point from a mark of 55.7 in June.

Building Sector Reports | Aug 3, 2015

Nonresidential construction spending up 11.5% YOY in June

This is the largest year-over-year growth over the first six months of a year since construction spending was tracked in 2002, according to Associated Builders and Contractors Chief Economist Anirban Basu.

Retail Centers | Jul 27, 2015

Fish-shaped shopping mall designed for odd plot of land in China

The mall, in Qinshui, a city in China’s Shanxi province, will fit within the 250x30-meter dimensions surrounded by parallel roads and two converging rivers. 

Healthcare Facilities | Jul 22, 2015

Best of healthcare design: 8 projects win AIA National Healthcare Design Awards

Montalba Architects' prototype mobile dental unit and Westlake Reed Leskosky's modern addition to the Cleveland Clinic Brunswick Family Health Center highlight the winning projects.

Multifamily Housing | Jul 20, 2015

At an 18-year high, multifamily construction continues to drive housing sector

Predictions that multifamily housing construction would taper off in 2015 may have underestimated the ongoing demand for this kind of housing, the vast majority of which is being marketed as rentals.

Sports and Recreational Facilities | Jul 17, 2015

Japan scraps Zaha Hadid's Tokyo Olympic Stadium project

The rising price tag was one of the downfalls of the 70-meter-tall, 290,000-sm stadium. In 2014, the cost of the project was 163 billion yen, but that rose to 252 billion yen this year.

boombox1 - default
boombox2 -
native1 -

More In Category




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 



Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: