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
Headquarters | Jun 30, 2022
Lenovo to build its new global headquarters in Beijing
Washington, D.C.-based architecture and design firm CallisonRTKL has announced it will create the new global headquarters in Beijing for Lenovo Group, a Chinese multinational personal technology company.
Mass Timber | Jun 29, 2022
Mass timber competition: building to net-zero winning proposals
The 2022 Mass Timber Competition: Building to Net-Zero is a design competition to expand the use of mass timber in the United States by demonstrating its versatility across building types and its ability to reduce the carbon footprint of the built environment.
Laboratories | Jun 29, 2022
The "collaboratory" brings digital innovation to the classroom
The Collaboratory—a mix of collaboration and laboratory—is a networking center being designed at the University of Denver’s College of Business.
Airports | Jun 29, 2022
BIG and HOK’s winning design for Zurich airport’s new terminal
Two years ago, Zurich Airport, which opened in the 1950s, launched an international design competition to replace the aging Dock A—the airport’s largest dock.
Museums | Jun 28, 2022
The California Science Center breaks grounds on its Air and Space Center
The California Science Center—a hands-on science center in Los Angeles—recently broke ground on its Samuel Oschin Air and Space Center.
Contractors | Jun 27, 2022
Reverse mentorship: A model for the future of the construction workforce
Reverse mentorship can help seasoned professionals develop new skills, stay connected with younger generations, and gain future-forward insights for life and business.
Building Team | Jun 27, 2022
Chapel of St. Ignatius by Steven Holl Architects receives AIA’s twenty-five year award
The American Institute of Architects (AIA) is honoring the Chapel of St. Ignatius in Seattle, designed by Steven Holl Architects, with its Twenty-five Year Award.
Green | Jun 22, 2022
The business case for passive house multifamily
A trio of Passive House experts talk about the true costs and benefits of passive house design and construction for multifamily projects.
Building Team | Jun 22, 2022
Design for new San Clemente Marine Safety Headquarters would create new public plaza
A proposed design by HMC Architects for a new San Clemente Marine Safety Headquarters makes creative use of the seaside topography of the Pacific Coast.
Augmented Reality | Jun 22, 2022
Not just for POKÉMON GO anymore: how augmented reality is transforming architecture
By solving a long-standing communication problem, Augmented Reality (AR) is poised to make architecture quicker, nimbler, and more cost effective.
