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.
“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.”
Related Stories
| Dec 28, 2014
Robots, drones, and printed buildings: The promise of automated construction
Building Teams across the globe are employing advanced robotics to simplify what is inherently a complex, messy process—construction.
BIM and Information Technology | Dec 28, 2014
The Big Data revolution: How data-driven design is transforming project planning
There are literally hundreds of applications for deep analytics in planning and design projects, not to mention the many benefits for construction teams, building owners, and facility managers. We profile some early successful applications.
| Dec 28, 2014
AIA course: Enhancing interior comfort while improving overall building efficacy
Providing more comfortable conditions to building occupants has become a top priority in today’s interior designs. This course is worth 1.0 AIA LU/HSW.
| Dec 28, 2014
6 trends steering today's college residence halls
University students want more in a residence hall than just a place to sleep. They want a space that reflects their style of living and learning.
| Dec 28, 2014
The lowdown on LODs: Bringing clarity to BIM
These days, BIM is par for the course across most facets of design. But a lot of the conversation surrounding BIM still lacks clarity due to ambiguous terminology, a lack of clear-cut guiding illustrations, and widely varying implementation, writes GS&P's John Scannell.
| Dec 28, 2014
7 fresh retail design strategies
Generic ‘boxes’ and indifferent service won’t cut it with today’s savvy shoppers. Retailers are seeking a technology-rich-but-handmade vibe, plus greater speed to market and adaptability.
| Dec 27, 2014
7 ways to enhance workplace mobility
The open work environment has allowed owners to house more employees in smaller spaces, minimizing the required real estate and capital costs. But, what about all of their wireless devices?
| Dec 27, 2014
'Core-first' construction technique cuts costs, saves time on NYC high-rise project
When Plaza Construction first introduced the concept of "core first" in managing the construction of a major office building, the procedure of pouring concrete prior to erecting a steel frame had never been done in New York City.
| Dec 23, 2014
5 tech trends transforming BIM/VDC
From energy modeling on the fly to prefabrication of building systems, these advancements are potential game changers for AEC firms that are serious about building information modeling.
| Dec 22, 2014
What Building Teams can learn from home builders' travails
Commercial and residential construction can be as different as night and day. But as one who covered the housing industry for nearly a decade, I firmly believe AEC firms can learn some valuable lessons from the trials and tribulations that home builders experienced during the Great Recession, writes BD+C's John Caulfield.