Blame it on the weather. That's what many economists have been doing over the past two months as economic data continue to disappoint. Retail sales, durable goods orders, and other categories have not been as strong as anticipated.
Nonresidential construction has often proved an exception, with the industry's momentum gaining steam recently. However, in February, nonresidential construction spending remained virtually unchanged, inching down 0.1% on a monthly basis, according to the April 1 release from the U.S. Census Bureau.
The February 2015 spending figure is 4.6% higher than February 2014, as spending for the month totaled $611.5 billion on a seasonally adjusted annualized basis. The estimate for January spending was revised downward, from $614.1 billion to $611.9 billion, while the government revised December's spending estimate upward from $627 billion to $629.3 billion.
"Construction is impacted more by weather than just about any economic segment, and the impact of February's brutal weather is evident in the government's spending figure," said Associated Builders and Contractors Chief Economist Anirban Basu. "ABC continues to forecast a robust nonresidential construction spending recovery in 2015, despite the most recent monthly data, with the obvious exceptions of industry segments most directly and negatively impacted by declines in energy prices.
"The broader U.S. economy has not gotten off to as good a start in 2015 as many had expected with consumer spending growth frustrated by thriftier than anticipated shoppers," said Basu. "With winter behind us and temperatures warming, the expectation is that economic growth will roar back during the second quarter, which is precisely what happened last year. To the extent that this proves to be true, nonresidential construction's recovery can be expected to persist."
Seven of 16 nonresidential construction subsectors posted increases in spending in February on a monthly basis.
- Manufacturing-related spending expanded 6.8 percent in February and is up 37.9% on a year-over-year basis.
- Conservation and development-related construction spending expanded 11% for the month and is up 19.8% on a yearly basis.
- Office-related construction spending expanded 2.4% in February and is up 19% from the same time one year ago.
- Amusement and recreation-related construction spending gained 2% on a monthly basis and is up 22.5% from the same time last year.
- Education-related construction spending grew 0.3% for the month, but is down 0.6% on a year-over-year basis.
- Construction spending in the transportation category grew 0.6% on a monthly basis and has expanded 9.3% on an annual basis.
- Lodging-related construction spending was up 5% on a monthly basis and 10.4% on a year-over-year basis.
Spending in nine nonresidential construction subsectors failed to rise in February.
- Healthcare-related construction spending fell 0.9% for the month and is down 4.5% for the year.
- Spending in the water supply category dropped 7.8% from January, but is still 7.4% higher than at the same time last year.
- Public safety-related construction spending lost 2.2% on a monthly basis and is down 9.6% on a year-over-year basis.
- Commercial construction spending lost 1.9% in February, but is up 13.5% on a year-over-year basis.
- Religious spending fell 4.8% for the month and is down 10.3% from the same time last year.
- Sewage and waste disposal-related construction spending shed 1.4% for the month, but has grown 19.9% on a 12-month basis.
- Power-related construction spending fell 4.5% for the month and is 17.2% lower than at the same time one year ago.
- Lodging construction spending is down 4.4% on a monthly basis, but is up 18.2% on a year-over-year basis.
- Sewage and waste disposal-related construction spending shed 7.5% for the month, but has grown 16% on a 12-month basis.
- Power-related construction spending fell 1.1% for the month and is 13.2% lower than at the same time one year ago.
- Communication-related construction spending fell 6.1% for the month and is down 15.5% for the year.
- Highway and street-related construction spending was unchanged in February and is up 3.3% compared to the same time last year.
To view the previous spending report, click here.
Related Stories
Senior Living Design | Jul 23, 2024
The growing importance of cultural representation in senior living communities
Perkins Eastman architect Mwanzaa Brown reflects on the ties between architecture, interior design, and the history and heritage of a senior living community’s population.
MFPRO+ News | Jul 22, 2024
Miami luxury condominium tower will have more than 50,000 sf of amenities
Continuum Club & Residences, a new 32-story luxury condominium tower in the coveted North Bay Village of Miami will feature more than 50,000 sf of indoor and outdoor amenities. The program includes a waterfront restaurant, dining terraces with resident privileges, and a private dining room outdoor pavilion.
Healthcare Facilities | Jul 22, 2024
5 healthcare building sector trends for 2024-2025
Interactive patient care systems and trauma-informed design are among two emerging trends in the U.S. healthcare building sector, according to BD+C's 2024 Healthcare Annual Report (free download; short registration required).
MFPRO+ News | Jul 22, 2024
6 multifamily WAFX 2024 Prize winners
Over 30 projects tackling global challenges such as climate change, public health, and social inequality have been named winners of the World Architecture Festival’s WAFX Awards.
Office Buildings | Jul 22, 2024
U.S. commercial foreclosures increased 48% in June from last year
The commercial building sector continues to be under financial pressure as foreclosures nationwide increased 48% in June compared to June 2023, according to ATTOM, a real estate data analysis firm.
Codes and Standards | Jul 22, 2024
Tennessee developers can now hire their own building safety inspectors
A new law in Tennessee allows developers to hire their own building inspectors to check for environmental, safety, and construction violations. The law is intended to streamline the building process, particularly in rapidly growing communities.
Codes and Standards | Jul 22, 2024
New FEMA rules include climate change impacts
FEMA’s new rules governing rebuilding after disasters will take into account the impacts of climate change on future flood risk. For decades, the agency has followed a 100-year floodplain standard—an area that has a 1% chance of flooding in a given year.
Construction Costs | Jul 18, 2024
Data center construction costs for 2024
Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers.
Sustainability | Jul 18, 2024
Grimshaw launches free online tool to help accelerate decarbonization of buildings
Minoro, an online platform to help accelerate the decarbonization of buildings, was recently launched by architecture firm Grimshaw, in collaboration with more than 20 supporting organizations including World Business Council for Sustainable Development (WBCSD), RIBA, Architecture 2030, the World Green Building Council (WorldGBC) and several national Green Building Councils from across the globe.
University Buildings | Jul 17, 2024
University of Louisville Student Success Building will be new heart of engineering program
A new Student Success Building will serve as the heart of the newly designed University of Louisville’s J.B. Speed School of Engineering. The 115,000-sf structure will greatly increase lab space and consolidate student services to one location.