National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.
Spending was down on a monthly basis in 7 of 16 nonresidential subcategories. Private nonresidential spending fell 0.1%, while public nonresidential construction spending was down 0.4% in June.
![](/sites/default/files/inline-images/construction%20spending.jpg)
“A new trend in nonresidential construction is emerging, and it’s not a good thing,” said ABC Chief Economist Anirban Basu. “Despite a bevy of megaprojects in certain parts of the nation, overall nonresidential construction spending appears to have entered a period of stagnation. The flattening of momentum has been apparent for the better part of a year, but the impact of higher interest rates, tighter credit conditions and a softening economy is increasingly apparent in the most recent data, which indicate that aggregate nonresidential construction spending is in decline.
“Despite a recent loss in spending growth momentum, many contractors remain upbeat, according to ABC’s Construction Confidence Index, anticipating growth in revenues and payrolls over the next six months,” said Basu. “But with interest rates staying higher for longer, it appears that many projects are being put on hold, limiting construction starts, suppressing backlog and perhaps eventually eroding current contractor confidence.”
![Nonresidential construction spending decreased 0.2% in June](/sites/default/files/inline-images/spending.jpg)
Related Stories
| Jun 11, 2018
Accelerate Live! talk: AEC data hunter - How a Fortune 500 data guru is transforming a construction giant
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), data expert Catherine Rose shares how data-driven decision making is transforming construction operations and business operations at Skanska USA.
Libraries | Jun 1, 2018
New library offers a one-stop shop for what society is craving: hands-on learning
Beyond lending books and DVDs, the Elkridge (Md.) branch library loans household tools like ladders, wheelbarrows, and sewing machines.
| May 30, 2018
Accelerate Live! talk: Seven technologies that restore glory to the master builder
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), AEC technophile Rohit Arora outlines emerging innovations that are poised to transform how we design and build structures in the near future.
| May 30, 2018
Accelerate Live! talk: Why the AEC industry must adapt to the Internet of Things boom
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), building systems expert Jeff Carpenter explores established and emerging IoT applications for commercial and institutional buildings, and offers a technology roadmap for navigating the IoT landscape.
| May 30, 2018
Accelerate Live! talk: T3 mass timber office buildings
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), architect and mass timber design expert Steve Cavanaugh tells the story behind the nation’s newest—and largest—mass timber building: T3 in Minneapolis.
| May 30, 2018
Accelerate Live! talk: An AEC giant’s roadmap for integrating design, manufacturing, and construction
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), Skender CEO Mark Skender and Chief Design Officer Tim Swanson present the construction giant’s vision for creating a manufacturing-minded, vertically-integrated design-manufacturing-build business model.
| May 30, 2018
Accelerate Live! talk: From micro schools to tiny houses: What’s driving the downsizing economy?
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), micro-buildings design expert Aeron Hodges, AIA, explores the key drivers of the micro-buildings movement, and how the trend is spreading into a wide variety of building typologies.
Market Data | May 29, 2018
America’s fastest-growing cities: San Antonio, Phoenix lead population growth
San Antonio added 24,208 people between July 2016 and July 2017, according to U.S. Census Bureau data.
Contractors | May 27, 2018
Swinerton rebrands to call attention to its broader portfolio
Renewable energy is the kind of higher-margin business sector into which this GC has been expanding.
| May 24, 2018
Accelerate Live! talk: The rise of multi-user virtual reality
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), two of CannonDesign's tech leaders present their early findings from pilot testing multi-user VR technology for AEC project coordination.