National nonresidential construction spending increased 0.4% in February, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $982.2 billion for the month, up 16.8% from the previous year.
Spending declined on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending was up 0.7%, while public nonresidential construction spending was down 0.2% in February.
“Nonresidential construction spending increased for the eighth time in the past nine months in February,” said ABC Chief Economist Anirban Basu. “Importantly, almost all of the nonresidential sector’s momentum is attributable to manufacturing-related construction, which accounted for nearly 35% of the year-over-year growth in spending. Excluding the manufacturing segment, spending in the other 15 nonresidential segments collectively declined in February.
“While the manufacturing segment should continue to see elevated levels of investment, tightening credit conditions will likely hinder nonresidential construction momentum in the near term,” said Basu. “Contractors maintain a healthy level of backlog, according to ABC’s Construction Backlog Indicator, but a gloomy economic outlook and difficulty securing financing are potential headwinds for the industry for the rest of 2023.”
Related Stories
Market Data | Jul 11, 2018
Construction material prices increase steadily in June
June represents the latest month associated with rapidly rising construction input prices.
Market Data | Jun 26, 2018
Yardi Matrix examines potential regional multifamily supply overload
Outsize development activity in some major metros could increase vacancy rates and stagnate rent growth.
Market Data | Jun 22, 2018
Multifamily market remains healthy – Can it be sustained?
New report says strong economic fundamentals outweigh headwinds.
Market Data | Jun 21, 2018
Architecture firm billings strengthen in May
Architecture Billings Index enters eighth straight month of solid growth.
Market Data | Jun 20, 2018
7% year-over-year growth in the global construction pipeline
There are 5,952 projects/1,115,288 rooms under construction, up 8% by projects YOY.
Market Data | Jun 19, 2018
ABC’s Construction Backlog Indicator remains elevated in first quarter of 2018
The CBI shows highlights by region, industry, and company size.
Market Data | Jun 19, 2018
America’s housing market still falls short of providing affordable shelter to many
The latest report from the Joint Center for Housing Studies laments the paucity of subsidies to relieve cost burdens of ownership and renting.
Market Data | Jun 18, 2018
AI is the path to maximum profitability for retail and FMCG firms
Leading retailers including Amazon, Alibaba, Lowe’s and Tesco are developing their own AI solutions for automation, analytics and robotics use cases.
Market Data | Jun 12, 2018
Yardi Matrix report details industrial sector's strength
E-commerce and biopharmaceutical companies seeking space stoke record performances across key indicators.
Market Data | Jun 8, 2018
Dodge Momentum Index inches up in May
May’s gain was the result of a 4.7% increase by the commercial component of the Momentum Index.
