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
University Buildings | Feb 7, 2023
Kansas City University's Center for Medical Education Innovation can adapt to changes in medical curriculum
The Center for Medical Education Innovation (CMEI) at Kansas City University was designed to adapt to changes in medical curriculum and pedagogy. The project program supported the mission of training leaders in osteopathic medicine with a state-of-the-art facility that leverages active-learning and simulation-based training.
Giants 400 | Feb 6, 2023
2022 Reconstruction Sector Giants: Top architecture, engineering, and construction firms in the U.S. building reconstruction and renovation sector
Gensler, Stantec, IPS, Alfa Tech, STO Building Group, and Turner Construction top BD+C's rankings of the nation's largest reconstruction sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Transit Facility Giants: Top architecture, engineering, and construction firms in the U.S. transit facility sector
Walsh Group, Skanska USA, HDR, Perkins and Will, and AECOM top BD+C's rankings of the nation's largest transit facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Telecommunications Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. telecommunications facility sector
AECOM, Alfa Tech, Kraus-Anderson, and Stantec head BD+C's rankings of the nation's largest telecommunications facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Religious Sector Giants: Top architecture, engineering, and construction firms in the U.S. religious facility construction sector
HOK, Parkhill, KPFF, Shawmut Design and Construction, and Wiss, Janney, Elstner head BD+C's rankings of the nation's largest religious facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Justice Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. justice facility/public safety sector
Stantec, DLR Group, Turner Construction, STO Building Group, AECOM, and Dewberry top BD+C's rankings of the nation's largest architecture, engineering, and construction firms for justice facility/public safety buildings work, including correctional facilities, fire stations, jails, police stations, and prisons, as reported in the 2022 Giants 400 Report.
Giants 400 | Feb 6, 2023
2022 Parking Structure Giants: Top architecture, engineering, and construction firms in the U.S. parking structure sector
Choate Parking Consultants, Walker Consultants, Kimley-Horn, PCL, and Balfour Beatty top BD+C's rankings of the nation's largest parking structure sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Market Data | Feb 6, 2023
Nonresidential construction spending dips 0.5% in December 2022
National nonresidential construction spending decreased by 0.5% in December, 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 $943.5 billion for the month.
Giants 400 | Feb 3, 2023
Top Workplace/Interior Fitout Architecture, Engineering, and Construction Firms for 2022
Gensler, Interior Architects, AECOM, STO Building Group, and CBRE top the ranking of the nation's largest workplace/interior fitout architecture, engineering, and construction firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Multifamily Housing | Feb 3, 2023
HUD unveils report to help multifamily housing developers overcome barriers to offsite construction
The U.S. Department of Housing and Urban Development, in partnership with the National Institute of Building Sciences and MOD X, has released the Offsite Construction for Housing: Research Roadmap, a strategic report that presents the key knowledge gaps and research needs to overcome the barriers and challenges to offsite construction.
