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
Warehouses | Feb 5, 2015
Self storage facility designed to blend in with Miami Beach's party scene
The plans by architect Gutierrez & Lozano are of a sleek, boutique-looking, 22,500-sf facility at the gateway to the city.
Sponsored | Designers | Feb 5, 2015
3D printing has people in the building and construction industry talking
How can 3D printing affect the building design and construction industry?
Cultural Facilities | Feb 5, 2015
5 developments selected as 'best in urban placemaking'
Falls Park on the Reedy in Greenville, S.C., and the Grand Rapids (Mich.) Downtown Market are among the finalists for the 2015 Rudy Bruner Award for Urban Excellence.
Architects | Feb 5, 2015
Toy around with Ittyblox's ultra-detailed building blocks
For Lego fanatics, time is no object when building a model. For those of us with a little less time, Ittyblox is a good solution.
Transit Facilities | Feb 4, 2015
London mayor approves plan for a bicycle highway
The plan will guarantee bike riders a designated stretch of street to ride from east to west through the city.
Sports and Recreational Facilities | Feb 4, 2015
Arup unveils plans for the new A.C. Milan stadium
The venue will include a modern stage for the home matches together with a hotel, sports college, restaurants, children’s playground, green areas, and spaces open to the city and dedicated to public use.
Higher Education | Feb 3, 2015
Integrated Learning Neighborhoods: A solution for linking student housing with the typical student experience
Just as urban housing fits into the city as a whole, student housing can be integrated into the campus network as a series of living/learning neighborhoods, write Gensler's Brian Watson and Mark McMinn.
Office Buildings | Feb 3, 2015
5 trends transforming workplace design
RTKL's workplace design expert Jodi Williams foresees healthier and more technologically enabled offices that allow productive worker interaction, wherever they happen to be.
Architects | Feb 3, 2015
Frank Lloyd Wright’s work nominated for UNESCO World Heritage Status
If selected, Wright’s work will be the first examples of U.S. modern architecture on the list.
Contractors | Feb 3, 2015
Nonresidential construction spending expands in December 2014
Seven of 16 nonresidential construction subsectors posted increases in spending in December on a monthly basis.