National nonresidential construction spending increased 0.8% in July, 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 $847.6 billion for the month.
Spending was up on a monthly basis in 13 of the 16 nonresidential subcategories. Private nonresidential spending was up 0.4%, while public nonresidential construction spending was up 1.5% in July.
“The nonresidential sector continues to grapple with rising borrowing costs, elevated materials and labor costs and pervasive economic pessimism,” said ABC Chief Economist Anirban Basu. “Despite a modest increase in July, nonresidential construction spending remains below its pre-pandemic level. There is, however, at least one bright spot for the industry: publicly financed construction. State and local governments are flush with cash, and considerable funding is slated for various forms of infrastructure. In July, spending in the highway and street category increased 4.4%, while spending in the public safety category rose 2.3%.
“For privately financed construction, circumstances could get worse before they get better,” said Basu. “The Federal Reserve recently recommitted to further tightening monetary policy. Market sentiment quickly turned negative. Rather than disappear, supply chain challenges are proliferating in much of the world, including in Europe and China, and the risk of recession is elevated. This is simply not a set of circumstances conducive to rapid nonresidential construction spending growth, and according to the most recent Construction Confidence Index, just 31% of contractors expect their profit margins to grow over the next six months.”
![Spending Table](/sites/default/files/inline-images/Spending_Table_9.1.22.jpeg)
![Spending Graph](/sites/default/files/inline-images/Spending_Graph_9.1.22.jpg)
Related Stories
AEC Business Innovation | Sep 28, 2021
Getting diversity, equity, and inclusion going in AEC firms
As a professional services organization built on attracting the best and brightest talent, VIATechnik relies on finding new ways to do just that. Here are some tips that we’ve learned through our diversity, equity, and inclusion (DE&I) journey.
Contractors | Sep 23, 2021
California office/lab construction site earns world’s first TRUE preconstruction zero-waste certification
Located on a former landfill, the Genesis Marina project site is expected to divert over 90% of its waste from landfills and incineration.
Contractors | Sep 23, 2021
No summer vacation for the GC Kraus Anderson
Since late July, it has completed enlargements and improvements of three schools and a clinic, and the creation of a police-fire station complex.
Contractors | Sep 23, 2021
Balfour Beatty’s outreach to veterans pays dividends in leadership and growth
Contracts for work it’s done for the San Diego Unified School District have extended to several disabled vet-owned businesses.
Multifamily Housing | Sep 22, 2021
11 notable multifamily projects to debut in 2021
A residence for older LGBTQ+ persons, a P3 student housing building, and a converted masonic lodge highlight the multifamily developments to debut this year.
Data Centers | Sep 22, 2021
Wasted energy from data centers could power nearby buildings
A Canadian architecture firm comes up with a concept for a community that’s part of a direct-current microgrid.
Hotel Facilities | Sep 22, 2021
Will hotel developers finally embrace modular construction?
Last May, MiTek, a construction software and building services company that’s part of Warren Buffett’s Berkshire Hathaway conglomerate, formed a partnership with Danny Forster & Architecture to promote modular design and construction.
Contractors | Sep 3, 2021
Construction demand continues to outpace the industry’s workforce capacity
Skilled worker shortages are causing project delays, and even cancellations, according to latest AGC-Autodesk survey.
Multifamily Housing | Sep 1, 2021
Top 10 outdoor amenities at multifamily housing developments for 2021
Fire pits, lounge areas, and covered parking are the most common outdoor amenities at multifamily housing developments, according to new research from Multifamily Design+Construction.
Giants 400 | Aug 30, 2021
2021 Giants 400 Report: Ranking the largest architecture, engineering, and construction firms in the U.S.
The 2021 Giants 400 Report includes more than 130 rankings across 25 building sectors and specialty categories.