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
| Apr 19, 2012
Holcim cement plants recognized at PCA Spring Meeting
The Holly Hill plant received the PCA’s Chairman’s Safety Performance Award in recognition of their exceptional health and safety programs. The Theodore plant received the Environmental Performance Award in recognition of the steps they take beyond those required by laws, regulations and permits to minimize their impact on the environment.
| Apr 19, 2012
KTGY Group’s Arista Uptown Apartments in Broomfield, Colo. completed
First of eight buildings highlights unique amenities.
| Apr 19, 2012
Nauset begins work on $20M Joint Forces HQ at Hanscom AFB
3D imaging key to project timetable and cost containment.
| Apr 19, 2012
HBD Construction names Steven Meeks vice president
Meeks will provide expertise for the company in its many diverse areas of construction projects including health care, senior living, education and retail.
| Apr 18, 2012
Lafarge moving North American headquarters to Illinois
Lafarge CEO John Stull says the factors in their decision were location in the Midwest and area transportation.
| Apr 18, 2012
Positive conditions persist for Architecture Billings Index
The AIA reported the March ABI score was 50.4, following a mark of 51.0 in February; greatest demand is for commercial building projects.
| Apr 18, 2012
Syska Hennessy re-launches Information and Communication Technology practice
The ICT practice will focus a blend of products including Information Technology, Security, Audiovisual, Building Automation, Fire Life Safety, Medical Communications and Intelligent Building Systems.
| Apr 18, 2012
Perkins+Will designs new complex for Johns Hopkins Hosptial
The Charlotte R. Bloomberg Children’s Center and the Sheikh Zayed Tower create transformative patient-centric care.
| Apr 18, 2012
BBS Architects & Engineers acquires Ward Associates
The merged companies’ on-going project portfolio valued at $220 million.
| Apr 17, 2012
Princeton Review releases “Guide to 322 Green Colleges”
The guide profiles 322 institutions of higher education in the U.S. and Canada that demonstrate notable commitments to sustainability in their academic offerings, campus infrastructure, activities and career preparation.