Nonresidential construction spending remained unchanged in February, according to analysis of U.S. Census Bureau data released today by Associated Builders and Contractors (ABC). The segment totaled $701.9 billion on a seasonally adjusted annualized rate for the month, marking the seventh consecutive month in which nonresidential spending sat above the $700 billion threshold.
Private nonresidential construction spending faltered in February, with six of the 11 subsectors experiencing a month-over-month spending decrease. The communication category experienced a particularly precipitous decline, falling 8.1 percent for the month. Public nonresidential spending increased for the first time since October of 2016.
“Today’s construction spending report essentially left the status quo unchanged,” says ABC Chief Economist Anirban Basu in a release. “Recent ABC construction confidence surveys indicate roughly flat spending expected over the next six months. Today’s report was consistent with those expectations.
“Many construction firm leaders expect that ultimately, nonresidential construction spending will begin to climb as the new administration in Washington begins to implement its pro-business agenda,” says Basu. “That said, there is an awareness that the impact of proposed pro-business policies will not be immediate and may actually not be felt in earnest until 2018 or even 2019.
“Even in the absence of policy impacts, there has been a general improvement in overall business confidence in America,” said Basu. “This should translate into better construction spending performance over the months ahead, particularly in privately financed categories.”
Related Stories
Codes and Standards | Apr 4, 2022
Construction of industrial space continues robust growth
Construction and development of new industrial space in the U.S. remains robust, with all signs pointing to another big year in this market segment
Industry Research | Apr 4, 2022
Nonresidential Construction Spending Drops Slightly in February, Says ABC
National nonresidential construction spending was down 0.1% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau
Reconstruction & Renovation | Mar 28, 2022
Is your firm a reconstruction sector giant?
Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.
Industry Research | Mar 28, 2022
ABC Construction Backlog Indicator unchanged in February
Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8.
Industry Research | Mar 23, 2022
Architecture Billings Index (ABI) shows the demand for design service continues to grow
Demand for design services in February grew slightly since January, according to a new report today from The American Institute of Architects (AIA).
Industry Research | Mar 17, 2022
Construction input prices rise 2.6% in February, says ABC
Construction input prices increased 2.6% in February compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today
Museums | Mar 16, 2022
Unpacking the secrets to good museum storage
Museum leaders should focus as much design attention on the archives as the galleries themselves, according to a new white paper by Erin Flynn and Bruce Davis, architects and museum experts with the firm Cooper Robertson.
Codes and Standards | Mar 10, 2022
HOK offers guidance for reducing operational and embodied carbon in labs
Global design firm HOK has released research providing lab owners and developers guidance for reducing operational and embodied carbon to meet net zero goals.
Industry Research | Mar 9, 2022
Survey reveals five ways COVID-19 changed Americans’ impressions of public restrooms and facilities
Upon entering the third year of the pandemic, Americans are not only more sensitive to germs in public restrooms, they now hold higher standards for the cleanliness, condition and technology used in these shared spaces, according to the annual Healthy Handwashing Survey™ from Bradley Corporation conducted in January.
Codes and Standards | Mar 7, 2022
Late payments in the construction industry rose in 2021
Last year was a tough one for contractors when it comes to getting paid on time.