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
| Apr 24, 2013
North Carolina bill would ban green rating systems that put state lumber industry at disadvantage
North Carolina lawmakers have introduced state legislation that would restrict the use of national green building rating programs, including LEED, on public projects.
| Apr 24, 2013
Los Angeles may add cool roofs to its building code
Los Angeles Mayor Antonio Villaraigosa wants cool roofs added to the city’s building code. He is also asking the Department of Water and Power (LADWP) to create incentives that make it financially attractive for homeowners to install cool roofs.
| Apr 23, 2013
Building material innovation: Concrete cloth simplifies difficult pours
Milliken recently debuted a flexible fabric that allows for concrete installations on slopes, in water, and in other hard to reach places—without the need for molds or mixing.
| Apr 22, 2013
Top 10 green building projects for 2013 [slideshow]
The AIA's Committee on the Environment selected its top ten examples of sustainable architecture and green design solutions that protect and enhance the environment.
| Apr 19, 2013
DPR Construction acquires Hardin Construction
DPR Construction has purchased Atlanta-based Hardin Construction Company. The companies are combining operations in the Southeast and Texas markets, including Atlanta, Austin, Texas, Houston, and Raleigh, N.C.
| Apr 19, 2013
Must see: Shell of gutted church on stilts, 40 feet off the ground
Construction crews are going to extremes to save the ornate brick façade of the Provo (Utah) Tabernacle temple, which was ravaged by a fire in December 2010.
| Apr 18, 2013
Survey seeks info from managers of high-tech facilities
The International Institute for Sustainable Laboratories (I2SL), and Laney College in Oakland California, a National Science Foundation-funded Building Efficiency for a Sustainable Tomorrow (BEST) Center, are collaborating to identify education and training needs and strategies for high-tech facility operators.
| Apr 18, 2013
SOM, CASE team up to launch crowd-sourced apps library
SOM and CASE have formally launched AEC-APPS, the first crowd-sourced, web-based library for applications used by architects, engineers and construction professionals. This is a one-of-a-kind initiative in the AEC Industry and is a non-profit online community that allows digital tool users and toolmakers to share ideas, tips and resources.
| Apr 17, 2013
Frank Lloyd Wright's Park Avenue showroom demolished
New York loses another architectural gem by Frank Lloyd Wright as new owner razes auto showroom.
| Apr 17, 2013
First look: Renzo Piano's glass-domed motion pictures museum
The Academy of Motion Picture Arts and Sciences last week released preliminary plans for its $300 million Academy of Motion Picture Arts and Sciences museum in Los Angeles, designed by Renzo Piano and local architect Zoltan Pali.
