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
| May 28, 2014
KPF's dual towers in Turkey will incorporate motifs, symbols of Ottoman Empire
The two-building headquarters for Turkey’s largest and oldest financial institution, Ziraat Bank, is inspired by the country’s cultural heritage.
| May 28, 2014
Moshe Safdie's twin residential towers in Singapore will be connected by 'sky pool' 38 stories in the air [slideshow]
Moshe Safdie's latest project, a pair of 38-story luxury residential towers in Singapore, will be linked by three "sky garden" bridges, including a rooftop-level bridge with a lap pool running the length between the two structures.
| May 27, 2014
Supergreen Venter lab displayed in new walk-through video
ZGF Architects' La Jolla building for genomics pioneer J. Craig Venter and his nonprofit research organization aims to be the first net-zero energy, carbon-neutral biological lab.
| May 27, 2014
America's oldest federal public housing development gets a facelift
First opened in 1940, South Boston's Old Colony housing project had become a symbol of poor housing conditions. Now the revamped neighborhood serves as a national model for sustainable, affordable multifamily design.
| May 27, 2014
Contractors survey reveals improving construction market
The construction industry is on the road to recovery, according to a new survey by Metal Construction News. Most metrics improved from the previous year’s survey, including a 19.4% increase in the average annual gross contracting sales volume. SPONSORED CONTENT
| May 27, 2014
How to develop a dynamic referral system
Compelling your clients to provide you with quality referrals is one of the best ways to build a successful business. Here are ways to ‘train’ your clients to make quality referrals. SPONSORED CONTENT
| May 23, 2014
Top interior design trends: Gensler, HOK, FXFOWLE, Mancini Duffy weigh in
Tech-friendly furniture, “live walls,” sit-stand desks, and circadian lighting are among the emerging trends identified by leading interior designers.
| May 22, 2014
BIM-driven prototype turns data centers into a kit of parts
Data center design specialist SPARCH creates a modular scheme for solutions provider Digital Realty.
| May 22, 2014
Just two years after opening, $60 million high school stadium will close for repairs
The 18,000-seat Eagle Stadium in Allen, Texas, opened in 2012 to much fanfare. But cracks recently began to appear throughout the structure, causing to the school district to close the facility.
| May 22, 2014
Senate kills bipartisan energy efficiency bill over Keystone pipeline amendment
The legislation focused on energy efficiency standards such as water heaters with smart meters and cheaper heating and cooling systems for office buildings.
