National nonresidential construction spending grew 0.9% in November, 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 $930.1 billion for the month.
Spending was up on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending was up 1.7%, while public nonresidential construction spending was down 0.1% in November.
“The average nonresidential contractor starts 2023 with considerable backlog,” said ABC Chief Economist Anirban Basu. “Not coincidentally, contractors also have significant confidence regarding current year prospects, according to ABC’s Construction Confidence Index, which indicates expectations for growth in sales and employment with margins remaining stable.
“November’s construction spending report suggests that this confidence is warranted,” said Basu. “However, there are countervailing considerations. First, growth in nonresidential construction spending in November was not especially broad. Much of the growth came from the manufacturing category, which is partially attributable to construction related to large-scale chip manufacturing facilities. The balance of growth came mostly from conservation and development, which includes flood control expenditures. Were it not for those two categories, nonresidential construction spending would have been roughly flat in November.
“Second, backlog could dry up,” said Basu. “Anecdotal evidence suggests that banks are more cautious in their lending to the commercial real estate and multifamily segments. Fears of recession this year remain pervasive in an environment characterized by high and rising interest rates. It will be interesting to see how well backlog will hold up as contractors continue to build and the economy heads toward what is likely to be a Federal Reserve-induced recession.”
Related Stories
Giants 400 | Dec 5, 2023
Top 70 Federal Government Building Architecture Firms for 2023
Page Southerland Page, HOK, Gensler, LEO A DALY, and Stantec top BD+C's ranking of the nation's largest federal government building architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
University Buildings | Dec 5, 2023
The University of Cincinnati builds its largest classroom building to serve its largest college
The University of Cincinnati’s recently completed Clifton Court Hall unifies the school’s social science programs into a multidisciplinary research and education facility. The 185,400-sf structure is the university’s largest classroom building, serving its largest college, the College of Arts and Sciences.
MFPRO+ News | Dec 5, 2023
DOE's Zero Energy Ready Home Multifamily Version 2 released
The U.S. Department of Energy has released Zero Energy Ready Home Multifamily Version 2. The latest version of the certification program increases energy efficiency and performance levels, adds electric readiness, and makes compliance pathways and the certification process more consistent with the ENERGY STAR Multifamily New Construction (ESMFNC) program.
Giants 400 | Nov 28, 2023
Top 55 Laboratory Construction Firms for 2023
Whiting-Turner, DPR Construction, STO Building Group, Skanska, and Hensel Phelps top BD+C's ranking of the nation's largest laboratory general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Contractors | Nov 28, 2023
Swinerton’s special projects units allow the national GC to operate like a local boutique firm
Swinerton’s Carolinas Division has been particularly successful in attracting jobs that require a nimble touch.
Engineers | Nov 27, 2023
Kimley-Horn eliminates the guesswork of electric vehicle charger site selection
Private businesses and governments can now choose their new electric vehicle (EV) charger locations with data-driven precision. Kimley-Horn, the national engineering, planning, and design consulting firm, today launched TREDLite EV, a cloud-based tool that helps organizations develop and optimize their EV charger deployment strategies based on the organization’s unique priorities.
Market Data | Nov 27, 2023
Number of employees returning to the office varies significantly by city
While the return-to-the-office trend is felt across the country, the percentage of employees moving back to their offices varies significantly according to geography, according to Eptura’s Q3 Workplace Index.
Resiliency | Nov 27, 2023
All levels of government need to act to cope with climate-driven flooding and sea level rise
The latest National Climate Assessment highlights the need for local, state, and federal governments to adopt policies to mitigate the effects of climate-driven flooding and sea level rise, according to a policy expert with the National Resources Defense Council.
Contractors | Nov 27, 2023
A Minnesota GC offers workers Wellness Pods as a mental health option
A maternal need sparked this idea for Gardner Builders.
Cultural Facilities | Nov 21, 2023
Arizona’s Water Education Center will teach visitors about water conservation and reuse strategies
Phoenix-based architecture firm Jones Studio will design the Water Education Center for Central Arizona Project (CAP)—a 336-mile aqueduct system that delivers Colorado River water to almost 6 million people, more than 80% of the state’s population. The Center will allow the public to explore CAP’s history, operations, and impact on Arizona.