An unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 despite a dip in both private residential and nonresidential activity, according to an analysis of new Census Bureau data by the Associated General Contractors of America. Association officials urged lawmakers in Washington to make water and surface transportation investment a top federal priority.
“Nearly every category of public construction increased in October, according to the preliminary Census figures, although for the first 10 months of 2013 combined, public spending continues to lag the 2012 year-to-date total,” said Ken Simonson, the association's chief economist. “Meanwhile, residential spending slipped for the month but still showed strong year-to-date gains, and nonresidential spending remained stuck in neutral.”
Construction put in place in October totaled $908 billion, 0.8 percent higher than in September. But figures for August and July were revised down below levels that initially exceeded the current October estimate. The total for the first 10 months of 2013 was 5.0 percent above the year-to-date mark for the same months in 2012.
Public construction spending jumped 3.9 percent for the month but trailed the 2012 year-to-date total by 2.8 percent. The two largest public components were mixed: highway and street construction increased 0.6 percent in October and 0.3 percent year-to-date, while educational construction leaped 8.5 percent for the month but fell 8.5 percent year-to-date, Simonson said.
Private residential spending slid 0.6 percent for the month but still climbed 17 percent year-to-date. New single-family construction decreased 0.6 percent in October but soared 30 percent in the first 10 months of 2013 compared with 2012. New multifamily spending advanced 2.2 percent in October and 46 percent year-to-date.
Private nonresidential spending edged down 0.5 percent for the month and up 0.8 percent year-to-date, Simonson observed. The largest private nonresidential category, power—including oil and gas as well as electricity—plunged 5.7 percent and 5.8 percent over the two time periods. But the next three niches in size—manufacturing, commercial (retail, warehouse and farm), and office—rose for the month and year-to-date.
“Construction will likely display varied patterns in the next several months,” Simonson said. “Multifamily construction will keep burgeoning but single-family homebuilding may stall. Private nonresidential spending should benefit from more power, energy and manufacturing work. Public construction remains threatened.”
Association officials said Congress and the administration should keep public construction from returning to its recent slump by quickly completing Water Resources Development legislation that has already passed both houses and passing a new surface transportation bill next year that funds repairs to deteriorating highway, bridge and transit infrastructure. They added that any new transportation bill must include provisions to adequately fund the nearly depleted federal Highway Trust Fund.
“If Congress can act in a bipartisan way on transportation funding as it did on the Water Resources bill, it can avoid a cliff-like drop in highway spending,” said Stephen E. Sandherr, the association’s chief executive officer.
Related Stories
Building Team | Jul 15, 2022
ABC: Construction materials prices increased in June, up 20% from a year ago
Construction input prices increased 1.9% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Arenas | Jul 15, 2022
U. of Oregon renovation aims for ‘finest track and field facility in the world’
The renovation of the University of Oregon’s Hayward Field had the goal of creating the “finest track and field facility in the world.”
Building Team | Jul 14, 2022
ABC’s construction backlog inches lower in June; Contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21 to July 5.
Sustainable Development | Jul 14, 2022
Designing for climate change and inclusion, with CBT Architects' Kishore Varanasi and Devanshi Purohit
Climate change is having a dramatic impact on urban design, in terms of planning, materials, occupant use, location, and the long-term effect of buildings on the environment. Joining BD+C's John Caulfield to discuss this topic are two experts from the Boston-based CBT Architects: Kishore Varanasi, a Principal and director of urban design; and Devanshi Purohit, an Associate Principal.
Multifamily Housing | Jul 14, 2022
Multifamily rents rise again in June, Yardi Matrix reports
Average U.S. multifamily rents rose another $19 in June to edge over $1,700 for the first time ever, according to the latest Yardi® Matrix Multifamily Report.
Building Team | Jul 14, 2022
Austin PBS gets a new state-of-the-art facility with three studios
Since the 1970s, Austin PBS, birthplace of the Austin City Limits TV series, has been based inside the communications building on the University of Texas campus—a space it has long outgrown.
Building Team | Jul 13, 2022
The YIMBY movement emerges as valuable advocate for affordable housing
Over the past few decades, developers grew accustomed to nothing but staunch opposition to dense affordable housing project proposals.
Energy | Jul 13, 2022
Electrification of buildings, new and old, furthers environmental responsibility and equity
It’s almost a cliché in our industry, but nonetheless: The greenest building is the one that is already built.
Building Team | Jul 13, 2022
Austin’s newest entertainment and hospitality complex has been made from repurposed shipping containers
A new entertainment and hospitality complex in Austin, The Pitch, has been made out of repurposed shipping containers.
Codes and Standards | Jul 12, 2022
USGBC sets out principles for LEED’s future
The U.S. Green Building Council recently published a report containing principles outlining how LEED will evolve.