flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC: Nonresidential spending slip in February no cause for alarm

Market Data

ABC: Nonresidential spending slip in February no cause for alarm

Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.


By ABC | April 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm

Photo: Victoria Pickering/Creative Commons

Nonresidential construction spending dipped in February, falling 1.4% on a monthly basis according to analysis of U.S. Census Bureau data released by Associated Builders and Contractors (ABC).

Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. While this represents a step back from January's figure of $700.3 billion (revised down from $701.9 billion), it is still 1.5% higher than the level of spending registered in December 2015 and 10.1% higher than February 2015. 

"February's weather was particularly harsh in certain parts of the country, including in the economic activity-rich Mid-Atlantic region, and that appears to have had an undue effect on construction spending data," ABC Chief Economist Anirban Basu said.  "February data are always difficult to interpret, and the latest nonresidential construction spending figures are no different. Seasonal factors have also made state-level data very difficult to interpret.

"Beyond meteorological considerations, there are other reasons not to be alarmed by February's decline in nonresidential construction spending," Basu said. "Today's positive construction employment report indicates continued economic growth. Moreover, much of the decline in volume was attributable to manufacturing, but the ISM manufacturing index recently crossed the threshold 50 level, indicating that domestic manufacturing is now expanding for the first time in seven months."

Eight of the 16 nonresidential subsectors experienced spending decreases in February, though almost half of the total decline in spending is attributable to the 5.9% decline in manufacturing-related spending.

The following 16 nonresidential construction sectors experienced spending increases in February on a monthly basis:

  • Spending in the amusement and recreation category climbed 0.4% from January and is up 13.7% from February 2015.
  • Lodging-related spending is up 0.4% for the month and is up 30.1% on a year-ago basis.
  • Water supply-related spending expanded 1.9% on a monthly basis and 3.2% on a yearly basis.
  • Spending in the office category grew 3.8% from January and is up 25.3% on a year-ago basis.
  • Transportation-related spending expanded 0.5% month-over-month and 5.8% year-over-year.
  • Health care-related spending expanded 2% from January and is up 3.3% from February 2015.
  • Public safety-related spending is up 1.8% for the month, but is down 5.3% for the year.
  • Commercial-related construction spending inched 0.1% higher for the month and grew 11% for the year.

Spending in eight of the nonresidential construction subsectors fell in February on a monthly basis:

  • Educational-related construction spending fell 2.4% from January, but has expanded 8.5% on a yearly basis.
  • Communication-related spending fell 15% month-over-month, but expanded 11.8% year-over-year.
  • Spending in the highway and street category fell 2% from January, but is 24.5 higher than one year ago.
  • Sewage and waste disposal-related spending fell 2.4% for the month, but is up 2.3% for the year.
  • Conservation and development-related spending is 4.6% lower on a monthly basis and 16.8% lower on a year-over-year basis.
  • Spending in the religious category fell 4% for the month and is up just 0.7% for the year.
  • Manufacturing-related spending fell 5.9% on a monthly basis and is up only 0.8% on a yearly basis.
  • Spending in the power category fell 0.6% from January, but is 4.8% higher than one year ago.

Related Stories

Market Data | May 12, 2020

ABC’s Construction Backlog Indicator falls in April; Contractor Confidence rebounds from historic lows

Nonresidential construction backlog is down 0.4 months compared to the March 2020 ABC survey and 1.7 months from April 2019.

Market Data | May 12, 2020

6 must reads for the AEC industry today: May 12, 2020

A 13-point plan to reduce coronavirus deaths in nursing homes and Bjarke Ingels discusses building on Mars.

Market Data | May 11, 2020

Interest in eSports is booming amid COVID-19

The industry has proved largely immune to the COVID-19 pandemic due to its prompt transition into online formats and sudden spike in interest from traditional sports organizations.

Market Data | May 11, 2020

6 must reads for the AEC industry today: May 11, 2020

Nashville residential tower will rise 416 feet and the construction industry loses 975,000 jobs.

Market Data | May 8, 2020

Construction industry loses 975,000 jobs in April as new association survey shows deteriorating demand for construction projects

Association partner Procore also releases near real-time construction data measuring impacts of coronavirus as association calls for new measures.

Market Data | May 8, 2020

7 must reads for the AEC industry today: May 8, 2020

The death of the office and Colorado's first multifamily project to receive WELL Precertification.

Market Data | May 7, 2020

5 must reads for the AEC industry today: May 7, 2020

5 memory care communities with a strong sense of mission and making jobsites safer in the COVID-19 world.

Market Data | May 6, 2020

6 must reads for the AEC industry today: May 6, 2020

5 questions engineers will ask after COVID-19 and coronavirus threatens push for denser housing.

Market Data | May 5, 2020

5 must reads for the AEC industry today: May 5, 2020

A new temporary hospital pops up in N.J., and apartment firms' reactivation plans begin to take shape.

Market Data | May 4, 2020

6 must reads for the AEC industry today: May 4, 2020

How working from home is influencing design and is this the end of the open office?

boombox1
boombox2
native1

More In Category


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, 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 $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.



Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers. 

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