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
| Jun 30, 2014
4 design concepts that remake the urban farmer's market
The American Institute of Architects held a competition to solve the farmer's markets' biggest design dilemma: lightweight, bland canopies that although convenient, does not protect much from the elements.
| Jun 30, 2014
Harvard releases the State of the Nation’s Housing 2014
Although the housing industry saw notable increases in construction, home prices, and sales in 2013, household growth has yet to fully recover from the effects of the recession, according to a new Harvard University report.
| Jun 30, 2014
OMA's The Interlace honored as one of the world's most 'community-friendly' high-rises
The 1,040-unit apartment complex in Singapore has won the inaugural Urban Habitat award from the Council on Tall Buildings and Urban Habitat, which highlights projects that demonstrate a positive contribution to the surrounding environment.
| Jun 30, 2014
Work starts on Jean Nouvel-designed European Patent Office in the Netherlands [slideshow]
With around 80,000 sm and a budget of €205 million self-financed by the EPO, the complex will be one of the biggest office construction sites ever in the Netherlands.
| Jun 30, 2014
Growth of crowdfunding, public-private partnerships among top trends in architecture marketplace
A new report by the American Institute of Architects highlights several emerging trends in the architecture marketplace, including the growth of the P3 project delivery model and designing for health.
| Jun 30, 2014
Report recommends making infrastructure upgrades a cabinet-level priority
The ASCE estimates that $3.6 trillion must be invested by 2020 to make critically needed upgrades and expansions of national infrastructure—and avoid trillions of dollars in lost business sales, exports, disposable income, and GDP.
| Jun 30, 2014
Gen X, not Baby Boomers, spending the most money on homes [infographic]
It turns out that Generation X, who have the highest incomes of the three generations surveyed, are paying the highest home payments and tend to have the largest households.
| Jun 30, 2014
Zaha Hadid's Iraq Parliament complex design marred with controversy
Zaha Hadid's design for the Iraq Parliament was selected, despite placing third in the original RIBA-organized competition.
| Jun 26, 2014
Plans for Britain’s newest landmark brings in international cooperation
Designers of the London Eye will team up with companies from France, the Netherlands and the United States to construct i360 Brighton, the U.K.'s newest observation tower.
| Jun 25, 2014
The best tall buildings of 2014
Four high-rise buildings from multiple continents have been selected as the best of their region. The best worldwide tall building will be announced November 6.