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
| Mar 10, 2014
Field tested: Caterpillar’s Cat B15 rugged smartphone
The B15 is billed by Cat as “the most progressive, durable and rugged device available on the market today.”
| Mar 10, 2014
5 rugged mobile devices geared for construction pros
BD+C readers share their most trusted smartphone and tablet cases. The editors select some of their faves, too.
| Mar 6, 2014
Must see: Tour Seinfeld's apartment with virtual reality headset
Fans of the show can now explore a virtual 3D model of the iconic New York residence, thanks to one Web designer's painstaking effort.
| Mar 5, 2014
5 tile design trends for 2014
Beveled, geometric, and high-tech patterns are among the hot ceramic tile trends, say tile design experts.
| Mar 4, 2014
How EIFS came to America
Design experts from Hoffmann Architects offer a brief history of exterior insulation and finish systems in the U.S.
| Mar 4, 2014
CENTRIA Demonstrates Commitment to Contractors
New Brochure Highlights Architectural Metal Panel Manufacturer’s Products, Expertise and Experience
| Mar 3, 2014
Engineering and construction CEOs are cautiously optimistic about the global economy, says PwC
Firm leaders remain leery about the availability of skilled workers, the state of government debt and deficits, and rising material prices, according to PwC’s 2014 Global CEO Survey.
| Feb 27, 2014
Target converts former prison dump into latest big-box store
Target's new San Rafael, Calif., location was built on the site of the former San Quentin prison dump.
| Feb 27, 2014
12 facts about heat-treated glass: Why stronger isn’t always better
Glass is heat-treated for two reasons: the first is to increase its strength to resist external stresses such as wind and snow loads, or thermal loads caused by the sun’s energy. The second is to temper glass so that it meets safety glazing requirements defined by applicable codes or federal standards.
| Feb 27, 2014
Metal Construction Association introduces two Environmental Product Declarations
Two Environmental Product Declarations (EPD), one for Metal Composite Material Panels and one for Roll Formed Steel Panels for Roofs and Walls, are now available free of charge from the Metal Construction Association (MCA) on its website.
