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
| Aug 8, 2013
Top Science and Technology Sector Construction Firms [2013 Giants 300 Report]
Skanska, DPR, Suffolk top Building Design+Construction's 2013 ranking of the largest science and technology sector contractors and construction management firms in the U.S.
| Aug 8, 2013
Level of Development: Will a new standard bring clarity to BIM model detail?
The newly released LOD Specification document allows Building Teams to understand exactly what’s in the BIM model they’re being handed.
| Aug 8, 2013
Vertegy spins off to form independent green consultancy
St. Louis-based Vertegy has announced the formation of Vertegy, LLC, transitioning into an independent company separate from the Alberici Enterprise. The new company was officially unveiled Aug. 1, 2013
| Aug 5, 2013
Top Retail Architecture Firms [2013 Giants 300 Report]
Callison, Stantec, Gensler top Building Design+Construction's 2013 ranking of the largest retail architecture and architecture/engineering firms in the United States.
| Aug 5, 2013
Top Retail Engineering Firms [2013 Giants 300 Report]
Jacobs, AECOM, Henderson Engineers top Building Design+Construction's 2013 ranking of the largest retail engineering and engineering/architecture firms in the United States.
| Aug 5, 2013
Retail market shows signs of life [2013 Giants 300 Report]
Retail rentals and occupancy are finally on the rise after a long stretch in the doldrums.
| Aug 5, 2013
Top Retail Construction Firms [2013 Giants 300 Report]
Shawmut, Whiting-Turner, PCL top Building Design+Construction's 2013 ranking of the largest retail contractor and construction management firms in the United States.
| Aug 2, 2013
Michael Baker Corp. agrees to be acquired by Integrated Mission Solutions
Michael Baker Corporation (“Baker”) (NYSE MKT:BKR) announced today that it has entered into a definitive merger agreement to be acquired by Integrated Mission Solutions, LLC (“IMS”), an affiliate of DC Capital Partners, LLC (“DC Capital”).
| Jul 31, 2013
Hotel, retail sectors bright spots of sluggish nonresidential construction market
A disappointing recovery of the U.S. economy is limiting need for new nonresidential building activity, said AIA Chief Economist, Kermit Baker in the AIA's semi-annual Consensus Construction Forecast, released today. As a result, AIA reduced its projections for 2013 spending to 2.3%.
| Jul 30, 2013
Better planning and delivery sought for VA healthcare facilities
Making Veterans Administration healthcare projects “better planned, better delivered” is the new goal of the VA’s Office of Construction and Facilities Management.