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
| Sep 22, 2014
USGBC names 2014 Best of Buildings Award winners
The Best of Building Awards celebrate the year’s best products, projects, organizations and individuals making an impact in green building.
| Sep 20, 2014
Healthcare conversion projects: 5 hard-earned lessons from our experts
Repurposing existing retail and office space is becoming an increasingly popular strategy for hospital systems to expand their reach from the mother ship. Our experts show how to avoid the common mistakes that can sabotage outpatient adaptive-reuse projects.
| Sep 19, 2014
Smithsonian Institution opens LEED Platinum lab facility
The Charles McC. Mathias Laboratory will emit 37% less CO2 than a comparable lab that does not meet LEED-certification standards.
| Sep 19, 2014
8 hot healthcare projects win interior design awards
Winners of IIDA's 2014 Healthcare Interior Design Competition include Perkins+Will, AECOM, Buffalo Design, and SmithGroupJJR, for projects from Cincinnati to Toronto.
| Sep 18, 2014
Final designs unveiled for DC's first elevated park
OMA, Höweler + Yoon, NEXT Architects, and Cooper, Robertson & Partners have just released their preliminary design proposals for what will be known as the 11th Street Bridge Park.
| Sep 17, 2014
Arquitectonica's hairpin-shaped tower breaks ground in Miami
Rising above Biscayne Bay, the 305-meter tower will include three viewing decks, a restaurant, nightclub, and exhibition space.
| Sep 17, 2014
Atlanta Braves break ground on mixed-use ballpark development
SunTrust Park will be constructed by American Builders 2017, a joint venture between Brasfield & Gorrie, Mortenson Construction, Barton Malow Company, and New South Construction.
| Sep 17, 2014
The doctor is in: New consortium to fund research of design's influence on public health
The AIA Design & Health Research Consortium has organized its design and health initiative around six evidence-based approaches.
| Sep 17, 2014
New developments in data center design
From the dozen or so facilities housing Google’s 900,000 servers to the sprawling server farms of Facebook to Amazon’s seven sites scattered around the world, today’s data centers must accommodate massive power demand, high heat loads, strict maintenance protocols, and super-tight security. This AIA Discovery course is worth 1.0 AIA CES HSW learning units.
| Sep 17, 2014
New hub on campus: Where learning is headed and what it means for the college campus
It seems that the most recent buildings to pop up on college campuses are trying to do more than just support academics. They are acting as hubs for all sorts of on-campus activities, writes Gensler's David Broz.