National nonresidential construction spending was up by 0.5% in September, 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 $883.9 billion for the month.
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories. Private nonresidential spending was up 1.0%, while public nonresidential construction spending was down 0.3% in September.
“The disconnect between contractor confidence, which remains elevated according to ABC’s Construction Confidence Index, and nonresidential construction spending continues,” said ABC Chief Economist Anirban Basu. “While nonresidential construction spending is below February 2020 levels, many contractors report operating at capacity. This has much to do with worker and equipment shortages.
“Many projects under construction in America began prior to the rapid increase in borrowing costs that started earlier this year,” said Basu. “With interest rates on the rise and the economy expected to slow, nonresidential spending will likely decline further, at least in segments vulnerable to economic downturns. Contractors that focus on public construction work stand to be in far better shape given recent federal legislation and excess pandemic relief funds waiting to be spent by many state and local governments.”
Related Stories
Education Facilities | Oct 13, 2022
A 44-acre campus serves as a professional retreat for public-school educators in Texas
A first-of-its-kind facility for public schools in Texas, the Holdsworth Center serves as a retreat for public educators, supporting reflection and dialogue.
Building Team | Oct 12, 2022
Real estate development practices worsened impact of Hurricane Ian
A century ago, the southwest Florida coast was mostly swamps and shoals, prone to frequent flooding and almost impossible to navigate by boat.
Market Data | Oct 12, 2022
ABC: Construction Input Prices Inched Down in September; Up 41% Since February 2020
Construction input prices dipped 0.1% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Hotel Facilities | Oct 12, 2022
Global hotel chain citizenM opens its first Chicago property and its fifth of the year
citizenM, a global chain of affordable luxury hotels, has opened its first Chicago property—its fifth opening of 2022.
Building Team | Oct 11, 2022
Associated Materials® Celebrates the Company’s Rich History, Which Began 75 Years Ago with the Founding of Alside
Since its inception in 1947, Alside® has been a leader in innovation and continues this very commitment to excellence – in people, products and services.
Multifamily Housing | Oct 5, 2022
Co-living spaces, wellness-minded designs among innovations in multifamily housing
The booming multifamily sector shows no signs of a significant slowdown heading into 2023. Here is a round up of Giants 400 firms that are driving innovation in this sector.
Fire and Life Safety | Oct 4, 2022
Fire safety considerations for cantilevered buildings
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
| Oct 3, 2022
The College of the Holy Cross completes a $110 million performing arts center
In Worcester, Mass., a one-hour drive from Boston, the College of the Holy Cross has completed its $110 million Prior Performing Arts Center.
Resiliency | Sep 30, 2022
Designing buildings for wildfire defensibility
Wold Architects and Engineers' Senior Planner Ryan Downs, AIA, talks about how to make structures and communities more fire-resistant.
| Sep 23, 2022
High projected demand for new housing prompts debate on best climate-friendly materials
The number of people living in cities could increase to 80% of the total population by 2100. That could require more new construction between now and 2050 than all the construction done since the start of the industrial revolution.
