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.
āThe nonresidential sector continues to grapple with rising borrowing costs, elevated materials and labor costs and pervasive economic pessimism,ā said ABC Chief Economist Anirban Basu. āDespite 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%.
āFor privately financed construction, circumstances could get worse before they get better,ā said Basu. āThe 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.ā
![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)
Ā
Related Stories
| Jan 16, 2014
ASHRAE revised climatic data for building design standards
ASHRAE Standard 169, Climatic Data for Building Design Standards,Ā now includes climatic data for 5,564 locations throughout the world.
| Jan 15, 2014
6 social media skills every leader needs
The social media revolutionāwhich is less than a decade oldāhas created a dilemma for senior executives. While its potential seems immense, the inherent risks create uncertainty and unease.
| Jan 15, 2014
Report: 32 U.S. buildings have been verified as net-zero energy performers
The New Buildings Institute's 2014 Getting to Zero Status report includes an interactive map detailing the net-zero energy buildings that have been verified by NBI.Ā
| Jan 13, 2014
AEC professionals weigh in on school security
An exclusive survey reveals that Building Teams are doing their part to make the nationās schools safer in the aftermath of the Sandy Hook tragedy.
| Jan 13, 2014
6 legislative actions to ignite the construction economy
The American Institute of Architects announced its āpunch listā for Congress that, if completed, will ignite the construction economy by spurring much needed improvements in energy efficiency, infrastructure, and resiliency, and create jobs for small business.
| Jan 12, 2014
The āfuzz factorā in engineering: when continuous improvement is neither
The biggest threat to human life in a building isnāt the potential of natural disasters, but the threat of human error. I believe itās a reality that increases in probability every time a code or standard change is proposed.Ā
| Jan 12, 2014
5 ways virtual modeling can improve facilities management
Improved space management, streamlined maintenance, and economical retrofits are among the ways building owners and facility managers can benefit from building information modeling.
| Jan 10, 2014
What the states should do to prevent more school shootings
To tell the truth, I didnāt want to write about the terrible events of December 14, 2012, when 20 children and six adults were gunned down at Sandy Hook Elementary School in Newtown, Conn. I figured other media would provide ample coverage, and anything we did would look cheap or inappropriate. But two things turned me around.
| Jan 10, 2014
Special Report: K-12 school security in the wake of Sandy Hook
BD+C's exclusive five-part report on K-12 school security offers proven design advice, technology recommendations, and thoughtful commentary on how Building Teams can help school districts prevent, or at least mitigate, a Sandy Hook on their turf.
| Jan 10, 2014
Resiliency, material health among top AEC focuses for 2014: Perkins+Will survey
Architectural giantĀ Perkins+WillĀ recently surveyed its staff of 1,500 design pros to forcast hot trends in the AEC field for 2014. The resulting Design + Insights Survey reflects a global perspective.