Construction spending in May reached the highest level since December 2009 as widespread gains in private nonresidential construction, single-family and multifamily homebuilding more than offset a continuing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America.
“It is encouraging to see such a broad-based pickup in private construction,” said Ken Simonson, the association’s chief economist. Simonson noted that private nonresidential spending climbed for the third month in a row and was 19% higher than in May 2011. Residential construction surged 3% for the month and 8% year-over-year, with new multifamily construction leaping 6% and 50%, respectively, and single-family homebuilding up 2% and 15%.
The construction economist said that four private nonresidential categories each posted 12-month spending increases of more than 25%: power and energy construction, 35%; hotels, 29%; educational and manufacturing, 27% apiece. There were also improvements in year-over-year totals for private transportation such as trucking and rail facilities, up 17%; health care and commercial (retail, warehouse and farm), 11%; and office construction, 7%.
In contrast, public construction slumped for the fifth consecutive month, falling 4% below the May 2011 level, Simonson noted. He said the largest public category, highway and street construction, slipped 0.5% from April but edged up 2% year-over-year, while the second-largest segment, educational construction, fell 3% and 7%, respectively.
“Based on the number and variety of projects that have been announced in recent months, I expect the private nonresidential sector to keep posting hefty gains for the rest of 2012 and beyond,” Simonson predicted. “Apartment construction seems sure to remain strong as well. Single-family homebuilding is not as solid but has apparently passed its low point. Together, these categories should mean that total construction spending in 2012 will be positive for the year for the first time since 2007 despite ongoing weakness in public construction. +
Related Stories
BIM and Information Technology | May 10, 2015
How beacons will change architecture
Indoor positioning is right around the corner. Here is why it matters.
Architects | May 10, 2015
Harness the connection between managing risk and increasing profitability, Part 2
In Part 1, we covered taking control of the submittals schedule and managing RFIs. Let’s move on to properly allocating substitutions and limiting change orders.
Architects | May 10, 2015
Harness the connection between managing risk and increasing profitability, Part 1
AE firms need to protect themselves against vague contractual and procedural situations during all phases of the project in order to minimize their liability and exposure to risk, writes AEC industry consultant Steve Whitehorn.
Building Team | May 8, 2015
Construction industry adds 45,000 jobs in April
The construction industry saw an increase in jobs during the month of April after losing approximately 9,000 positions in March.
Building Team | May 8, 2015
Surety bond forms specifically for design-build projects now available
The documents are the first of their kind to be coauthored by designers and builders.
High-rise Construction | May 6, 2015
Parks in the sky? Subterranean bike paths? Meet the livable city, designed in 3D
Today’s great cities must be resilient—and open—to many things, including the influx of humanity, writes Gensler co-CEO Andy Cohen.
Architects | May 5, 2015
How to build 'smart' teams
In today's complex world, there are no simple answers—solutions to our most pressing problems aren't offered in 140 characters. Instead, it takes teams of people to rise to a challenge, resolve issues, and execute on strategy, writes Paladino's Julie Honeywell.
Multifamily Housing | May 1, 2015
Trade groups extend campaign to promote apartment living
The groups claim that there are more than 37 million Americans—12% of the population—living in just under 20 million apartment units nationwide. Apartments and their residents contribute $1.3 trillion annually to the economy.
Contractors | May 1, 2015
Nonresidential fixed investments fall in latest Construction Economic Update
This is the first time that nonresidential fixed investment declined since the first quarter of 2011, ABC reported. Nonresidential fixed investment had been rising by more than 4% on an annualized basis during five of the previous six quarters.
Architects | Apr 30, 2015
Safdie Architects accepting applications for 2015 Research Fellowship
The program, which features a theme of “dense urbanism,” encourages participants to tackle the challenges associated with contemporary urban landscapes using new tools and solutions to create a better functioning and humane city.