Nonresidential construction surged in November, according to analysis of U.S. Census Bureau data released by Associated Builders and Contractors (ABC). Nonresidential spending expanded to $712.4 billion on a seasonally adjusted, annualized rate in November, representing the highest level of spending in eight years.
October’s figure was upwardly revised by 1 percent (from $699.7 billion to $706.5 billion), while September’s figure was upwardly revised by 0.8 percent (from $701.7 billion to $707.2 billion). A bit more than half of the 16 subsectors experienced spending increases in November.
“Nonresidential construction spending is up approximately 5 percent on a year-over-year basis, and momentum should build further,” says ABC Chief Economist Anirban Basu in a press release. ““If the last few weeks are any indication, the 2017 economy will be associated with tax cuts, more government spending, less financial regulation, faster economic growth, a stronger U.S. dollar, robust stock market performance and greater overall CEO confidence. That should translate into improved construction spending moving forward.”
A stronger U.S. dollar, larger budget deficits, and rising interest rates could shrink U.S. exports and serve to suppress U.S. economic dynamism, but the current nonresidential construction outlook is promising, according to Basu.
Related Stories
Laboratories | Aug 8, 2016
The lab of the future: smaller, flexible, tech-enabled, business focused
A new CBRE report emphasizes the importance of collaboration and standardization in lab design.
Industry Research | Aug 5, 2016
47 states experienced improvement in year-over-year construction unemployment rates in June
The drop in the construction unemployment rate from June 2015 extends the uninterrupted monthly sequence of year-over-year rate decreases that started in October 2010, according to Bernard M. Markstein, PhD, President and Chief Economist of Markstein Advisors.
Industry Research | Aug 2, 2016
Nonresidential construction spending declines again in June
On a year-over-year basis, nonresidential construction spending has fallen 1.1 percent, marking the first annual decline since July 2013
Industry Research | Jul 26, 2016
AIA consensus forecast sees construction spending on rise through next year
But several factors could make the industry downshift.
Industry Research | Jun 15, 2016
Survey: Americans avoid touching handles but use their phones in public bathrooms
Bradley’s 2016 Healthy Hand Washing Survey offers insights into restroom use.
Industry Research | May 11, 2016
Why corporate bathrooms stink and how good design can fix this
Despite their importance, bathrooms are often overlooked when it comes to building design. Gensler's Johnathan Sandler spoke with people in the industry and detailed some of the biggest gripes.
Big Data | May 5, 2016
The Center for Neighborhood Technology has launched the largest source of transit data in the country
AllTransit analyzes the social benefits of good transit service by analyzing data related to health, equity, and economic development.
Industry Research | May 5, 2016
National survey reveals offices aren’t built to benefit employees
A Saint-Gobain and SageGlass Work Environment Survey found insufficient access to daylight, poor air quality, and distracting noise at workplaces as the major issues experienced by employees
Industry Research | Apr 15, 2016
Commercial construction starts jumped 18% in March
Nonresidential construction has gotten off to a hot start this year and looks to gain even more momentum throughout the spring.
Industry Research | Apr 14, 2016
Contractor confidence down, but not out
Despite a slight regression, nonresidential construction confidence is still in positive territory
