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
| Feb 26, 2012
Milwaukee U-Haul facility receives LEED-CI Silver
The new elements of the facility now include: efficient lighting with day-lighting controls and occupancy sensors, a high-efficiency HVAC system used in conjunction with a newly constructed thermal envelope to help reduce energy consumption, and the installation of low-flow fixtures to reduce water consumption.
| Feb 26, 2012
Hollister Construction awarded 42,000-sf office fit-out in Holtsville, N.Y.
Space leased by U.S. General Service Administration.
| Feb 26, 2012
Alvarez-Glasman & Colvin’s Chen LEED certified
Chen works closely with property owners to ensure that their properties meet and exceed all industry standards, and also provide long-term energy savings.
| Feb 24, 2012
ABI remains positive for three straight months
The AIA reported the January ABI score was 50.9, following a mark of 51.0 in December.
| Feb 24, 2012
Larry Lord joins HDR Architecture as south region science and technology director
A founding partner at Lord, Aeck & Sargent, Lord is nationally renowned for his leadership in architecture for complex projects.
| Feb 24, 2012
Pottorff elevated to principal at Ricci Greene Associates
Pottorff is recognized in the justice field as an expert solely dedicated to the design and planning of courts and urban jails in both the U.S. and Canada.
| Feb 24, 2012
Skanska hires Tingle as senior VP and national director for its Sports Center of Excellence
Tingle has worked in the architecture and construction industries for more than 30 years, and for the last 23 years, he has focused primarily on large-scale sports construction projects
| Feb 23, 2012
Federal budget cuts put major building projects on hold
A plan to build the National Bio and Agro-Defense Facility in Kansas is among several major building projects in jeopardy after the Obama administration’s 2013 budget was unveiled. The budget would cut all construction spending for the facility.
| Feb 23, 2012
Regulators investigating construction accident at World Trade Center
The New York Port Authority and the city’s fire and building departments are investigating an accident at the World Trade Center construction site in lower Manhattan after a crane dropped steel beams that fell about 40 stories onto the truck that delivered them.
