flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC: Nonresidential spending falls again in December

Contractors

ABC: Nonresidential spending falls again in December

For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis.


By ABC | February 2, 2016
ABC: Nonresidential spending falls again in December

Construction in Indianpolis. Photo: sciondriver/Creative Commons.

Nonresidential construction spending dipped for a second consecutive month, falling 0.4% on a monthly basis in December, according to analysis of U.S. Census Bureau data released by Associated Builders and Contractors (ABC). Nonresidential construction spending totaled $681.2 billion on a seasonally adjusted, annualized basis. November's nonresidential construction spending estimate was revised lower by 0.6% to $683.7 billion. 

For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis. Private nonresidential spending dipped 2.1% for the month, while public sector spending expanded 2.2%.

"December's estimate is a bit unnerving not only because it represents a second consecutive month of spending decline, but also because unusually warm temperatures should have helped to translate into better spending performance," ABC Chief Economist Anirban Basu said. "A number of leading indicators suggest that nonresidential construction spending performance will remain choppy moving forward, both for the broader economy and the nation's nonresidential construction segment, including the Baltic Dry Index, the Conference Board's Index of Leading Economic Indicators and the Architecture Billings Index.

"This is not to suggest that the nonresidential recovery will end in the near term," Basu said. "Most firms continue to report healthy backlog and hiring remains aggressive, implying that many firms are staffing up in order to perform on forthcoming contractual opportunities. However, private credit is beginning to tighten and becoming more expensive. Consumer delinquencies are edging higher and corporate bond defaults have been climbing. Accordingly, many contractors may experience a slowdown in backlog accumulation in 2016, with the 2017-2018 economic outlook remaining decidedly murky."

Only four of 16 nonresidential construction sectors experienced spending increases in December on a monthly basis:

  • Spending in the highway and street category expanded by 9.6% on a monthly basis and 11.7% on a yearly basis.
  • Communication-related spending increased 4% month over month and 37.2% year over year.
  • Sewage and waste disposal-related spending expanded 1.3% for the month, but fell 9.7% from the same time last year.
  • Spending in the amusement and recreation category climbed 0.5% on a monthly basis and 9.2% on a year-over-year basis.

Spending in 12 of the nonresidential construction subsectors fell in December on a monthly basis:

  • Spending in the power category fell 0.3% from November 2015, but is 7.6% higher than in December 2014.
  • Commercial-related construction spending fell 0.6% for the month and 3.2% for the year.
  • Educational-related construction spending fell 0.8% on a monthly basis, but expanded 10% on a yearly basis.
  • Transportation-related spending fell 0.8% month over month, but expanded 2.3% year over year.
  • Lodging-related spending was down 1.3% for the month, but is up 29.1% on a year-ago basis.
  • Spending in the office category fell 1.8% from November 2015, but is up 16.6% from December 2014.
  • Water supply-related spending fell 2.9% on a monthly basis and 6.6% on a yearly basis.
  • Health care-related spending fell 3.2% month over month, but is up 0.4% year over year.
  • Spending in the religious category fell 4.1% for the month and 1.7% for the year.
  • Public safety-related spending declined 4.6% for the month and 7.4% for the year.
  • Manufacturing-related spending fell 7.2% from November 2015, but is 19.6% higher than in December 2014.
  • Conservation and development-related spending declined 9.9% on a monthly basis and is 8% lower on a yearly basis.

Related Stories

| Nov 14, 2011

Griffin Electric completes electrical work at Cary Arts Center

  The Griffin Electric team was responsible for replacing the previous electrical service on-site with a 1000A, 480/277V service and providing electrical feeds for a new fire pump chiller, six air-handlers and two elevators.

| Nov 14, 2011

303 East 33rd Street building achieves LEED-NC

  The 165,000 sf 12-story residential building is the first green development to be LEED certified in the Murray Hill neighborhood of Manhattan.

| Nov 14, 2011

VanSumeren appointed to Traco general manager

VanSumeren will draw on his more than 20 years of experience in manufacturing management and engineering to deliver operational and service excellence and drive profitable growth for Traco. 

| Nov 11, 2011

By the Numbers

What do ‘46.9,’ ‘886.2,’ and ‘171,271’ mean to you? Check here for the answer.

| Nov 11, 2011

Streamline Design-build with BIM

How construction manager Barton Malow utilized BIM and design-build to deliver a quick turnaround for Georgia Tech’s new practice facility.

| Nov 11, 2011

AIA: Engineered Brick + Masonry for Commercial Buildings

Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam. 

| Nov 11, 2011

How Your Firm Can Win Federal + Military Projects

The civilian and military branches of the federal government are looking for innovative, smart-thinking AEC firms to design and construct their capital projects. Our sources give you the inside story.

| Nov 10, 2011

BD+C's 28th Annual Reconstruction Awards

A total of 13 projects recognized as part of BD+C's 28th Annual Reconstruction Awards.

| Nov 10, 2011

Grousbeck Center for Students & Technology opens doors

New Perkins School for the Blind Building is dedicated to innovation, interaction, and independence for students.

boombox1
boombox2
native1

More In Category




Great Solutions

41 Great Solutions for architects, engineers, and contractors

AI ChatBots, ambient computing, floating MRIs, low-carbon cement, sunshine on demand, next-generation top-down construction. These and 35 other innovations make up our 2024 Great Solutions Report, which highlights fresh ideas and innovations from leading architecture, engineering, and construction firms.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021