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.”
Related Stories
Building Team Awards | Apr 10, 2015
Virtual collaboration helps complete a hospital in 24 months
PinnacleHealth needed a new hospital STAT! This team delivered it in two years, start to finish.
Building Team Awards | Apr 10, 2015
New arts venue reinvigorates Virginia Tech's campus
The STV-led Building Team creates a world-class performance and arts venue with learning and entrepreneurial dimensions.
Building Team Awards | Apr 9, 2015
Multifaced fitness center becomes campus landmark
A sloped running track and open-concept design put this Building Team to the test.
Building Team Awards | Apr 9, 2015
Nation's first LEED-certified bus depot
A bus garage in Harlem shows that even the most mundane of facilities can strut its environmentally sensitive stuff.
Building Team Awards | Apr 9, 2015
Setting the bar for port-of-entry design
Whenever you eat a tomato from Mexico, there’s a one-in-three chance it came through this LEED Gold gateway.
Building Team Awards | Apr 9, 2015
Big D’s billion-dollar baby: New Parkland Hospital Tops the Chart | BD+C
Dallas’s new $1.27 billion public hospital preserves an important civic anchor, Texas-style.
Building Team Awards | Apr 9, 2015
IPD-driven fusion facility serves science and student life in Chicago
In dire need of modern science labs and a student union, North Park University built both—in the same building.
Building Team Awards | Apr 9, 2015
‘Prudent, not opulent’ sets the tone for this Catholic hospital
This Building Team stuck with a project for seven years to get a new hospital built for a faithful client.
Building Team Awards | Apr 9, 2015
9/11 museum triumphs over controversy
The Building Team for this highly visible project had much more than design, engineering, and construction problems to deal with.
Building Team Awards | Apr 7, 2015
Unique test facility will help make wind power more feasible
A new facility at Clemson University makes it possible to test the huge stresses that large-scale wind turbines must be able to withstand.