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
| Jun 29, 2012
Guardian launches industry’s first glass visualizer for interior design
Online tool allows designers to explore the possibilities of glass.
| Jun 28, 2012
Federal applications of renewable energy
U.S. Army Fort Knox: Using the Earth for space heating and cooling. The U.S. Department of Energy’s (DOE) Federal Energy Management Program (FEMP) facilitates the Federal Government’s implementation of sound, cost-effective energy management and investment practices to enhance the nation’s energy security and environmental stewardship.
| Jun 27, 2012
HDR opens office in Beijing
The Beijing office is HDR’s second location in China; the firm’s other office is in Shanghai.
| Jun 27, 2012
KBE Building wins honor for Armed Forces Reserve Center
The construction phase was completed in just 16 months.
| Jun 27, 2012
SOM’s Baker receives honorary doctorate in engineering from Heriot-Watt University
Baker recognized for his career and influential contribution in the field of structural engineering.
| Jun 25, 2012
Living green wall planned for InterContinental Chicago
Project, with price tag of $2 million to $3 million, needs council approval.
| Jun 25, 2012
AIA-NJ honors DMR Architects
The academic building, completed in 2009, provides classrooms, computer labs, faculty offices, and meeting spaces for the College, which has a steady 7% annual increase in enrollment.
| Jun 25, 2012
Thornton Tomasetti appoints Hofmeister and Zhu to board of directors
The addition of Hofmeister and Zhu brings the number of directors to 10.
| Jun 20, 2012
WHR’s Tradewell Fellowship Marks 15th Anniversary
Fellowship program marks milestone with announcement of new program curator and 2012 fellow
| Jun 15, 2012
Beck Group/Atlanta wins AGC Build Georgia Award
Site-specific safety plan, BIM analysis and third-party structural review contributed to successful implementation.