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
| Jun 22, 2014
5 ways to improve your firm’s branding efforts
Establishing, conveying, and maintaining a powerful brand is a critical component of an AEC firm’s marketing strategy. Here are five strategies to make a greater impact with your firm’s branding efforts.
| Jun 20, 2014
CM firm Gafcon promotes Ron Takaki to VP/Project Operations
Executive holds more than 35 years experience in leading architectural, engineering, construction teams in large, complex project designs
| Jun 20, 2014
Sterling Bay pulled on board for Chicago Old Main Post Office project
Sterling Bay Cos. and Bill Davies' International Property Developers North America partner up for a $500 million restoration of Chicago's Old Main Post Office
| Jun 20, 2014
U.S. Energy Information Administration releases preliminary Commercial Buildings Energy Consumption Survey results
Federal survey project shows that commercial-building floorspace has grown 22% since 2003; energy-use data will be released in Spring 2015.
| Jun 20, 2014
Batson-Cook appoints Rygiel VP/Business Development for Tampa office
Rygiel will be responsible for cultivating and maintaining the contractor's business relationships in the state of Florida, concentrating on expanding the firm’s presence in the state’s private-development sector.
| Jun 19, 2014
First Look: 10 Design unveils new luxury apartments plan in Dubai
The Seventh Heaven complex features a stepped form that will offer stunning views of the Dubai skyline.
| Jun 19, 2014
First look: JDS Architects' roller-coaster-like design for Istanbul waterfront development
The development's wavy and groovy design promises unobstructed views of the Marmara Sea for every unit.
| Jun 19, 2014
Singapore's 'Tree House' vertical gardens break Guinness World Record
The high-rise development will have a 24,638-sf vertical garden, breaking a Guinness World Record.
| Jun 18, 2014
Design tips for Alzheimer care facilities
A new white paper from the Alzheimer’s Foundation of America and Perkins Eastman details best design practices for residential care settings for individuals living with Alzheimer’s disease.
| Jun 18, 2014
Largest Passive House structure in the U.S. to be built in Oregon
Orchards at Orenco, a 57-unit affordable housing complex in Hillsboro, Oregon, is the first of a three-phase, three-building complex.
