Nonresidential construction spending expanded in October for the third consecutive month (September's estimate was revised higher than August's) according to analysis of U.S. Census Bureau data released by Associated Builders and Contractors (ABC) today. Nonresidential construction spending totaled $701.8 billion in October on a seasonally adjusted annualized rate, a 1% increase on a monthly basis and an 11% increase on a yearly basis.
Private sector nonresidential construction spending added 0.6% for the month, reaching a total of $403.4 billion. Nonresidential spending in the public sector gained 1.4% from September, totaling $298.4 billion.
"The data tell a simple story: October was a strong month for nonresidential construction spending," said ABC Chief Economist Anirban Basu. "Interestingly, in October, publicly financed construction spending expanded more rapidly than private construction spending, representing a stark reversal from prior years when construction's recovery was motivated almost exclusively by private spending growth. There is reason to believe that public finances will continue to improve, which should help bolster nonresidential construction's fortunes into 2016.
"Construction spending continues to be supported by ongoing improvement in state and local government finances, inexpensive money, availability of both debt and equity to finance projects, growing demand for office and other forms of space, and added levels of confidence among key economic actors," Basu said.
Spending increased in 10 of 16 nonresidential construction sectors on a monthly basis in October:
- Public safety-related spending expanded by 15.7% for the month but fell by 2.2% from October 2014.
- Conservation and development-related spending gained 12.2% on a monthly basis and 9.6% on a yearly basis.
- Spending in the communication category increased by 7.3% since September 2015 and 19.2% since October 2014.
- Manufacturing-related spending expanded by 3% month-over-month and 40.5% year-over-year.
- Spending the water supply category grew by 2.4% for the month and 4.6% since the same time last year.
- Health care-related spending grew 1.3% from September and 6.1% from October of last year.
- Highway and street-related spending expanded by 1.1% on a monthly basis and 6% on a yearly basis.
- Transportation-related spending grew 0.9% month-over-month and 4.2% year-over-year.
- Office-related spending inched 0.5% higher on a monthly basis and 15.3% higher on a yearly basis.
- Spending in the educational category expanded by 0.4% from September 2015 and 9.4% from October 2014.
Spending in six of the nonresidential construction subsectors fell in October on a monthly basis:
- Spending in the amusement and recreation category fell by 0.3% for the month but increased by 24.1% on a yearly basis.
- Lodging-related spending declined 0.4% on a monthly basis but gained 29.6% year-over-year.
- Commercial-related spending dipped 0.5% from September 2015 and 2.2% from October 2014.
- Spending in the sewage and waste disposal category fell 0.7% on a monthly basis but expanded by 6.2% on a yearly basis.
- Power-related spending fell 1.9% for the month but is up 5.1% year-over-year.
- Religious-related spending dipped 3.4% on a month-ago basis but is up 10.3% from the same time last year.
To view the previous spending report, click here.
Related Stories
| Jul 14, 2014
Meet the bamboo-tent hotel that can grow
Beijing-based design cooperative Penda designed a bamboo hotel that can easily expand vertically or horizontally.
| Jul 11, 2014
First look: Jeanne Gang reinterprets San Francisco Bay windows in new skyscraper scheme
Chicago architect Jeanne Gang has designed a 40-story residential building in San Francisco that is inspired by the city's omnipresent bay windows.
| Jul 11, 2014
Are these LEGO-like blocks the future of construction?
Kite Bricks proposes a more efficient way of building with its newly developed Smart Bricks system.
| Jul 10, 2014
Unique design of Toronto's townhome The Tree House
Plans for a new Toronto townhome brings cutting-edge design.
| Jul 10, 2014
Berkeley Lab opens 'world's most comprehensive building efficiency simulator'
DOE’s new FLEXLAB is a first-of-its-kind simulator that lets users test energy-efficient building systems individually or as an integrated system, under real-world conditions.
| Jul 9, 2014
Dragon-inspired hotel conveys Vietnamese hospitality [2014 Building Team Awards]
An international Building Team unites to create Vietnam’s first JW Marriott luxury property.
| Jul 9, 2014
The one misstep that could be slowing your company’s growth
Change. It’s inevitable. And success for any professional may very well depend on how well we adapt to it. SPONSORED CONTENT
| Jul 8, 2014
Frank Lloyd Wright's posthumous gas station opens in Buffalo
Eighty-seven years after Frank Lloyd Wright designed an ornamental gas station for the city of Buffalo, the structure has been built and opened to the public—inside an auto museum.
| Jul 7, 2014
Team unity pays off for a new hospital in Maine [2014 Building Team Awards]
Extensive use of local contractors, vendors, and laborers brings a Maine hospital project in months ahead of schedule.
| Jul 7, 2014
A climate-controlled city is Dubai's newest colossal project
To add to Dubai's already impressive portfolio of world's tallest tower and world's largest natural flower garden, Dubai Holding has plans to build the world's largest climate-controlled city.