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
| Aug 11, 2010
USGBC’s Greenbuild 2009 brings global ideas to local main streets
Save the planet with indigenous knowledge. Make permanent water part of your life. Dive deep water for clues to environmental success. Connect site selection to successful creative concepting. Explore the unknown with Discovery Channel’s best known guide. These are but a few of the big ideas participants can connect to at USGBC’s Greenbuild International Conference and Expo, taking place on November 11-13, 2009 in Phoenix, Ariz.
| Aug 11, 2010
Urban Land Institute honors five 'outstanding' developments in Europe, Middle East, and Africa
Five outstanding developments have been selected as winners of the Urban Land Institute (ULI) 2009 Awards for Excellence: Europe, Middle East, and Africa (EMEA) competition. This year, the competition also included the announcement of two special award winners. The Awards for Excellence competition is widely regarded as the land use industry’s most prestigious recognition program.
| Aug 11, 2010
A glimmer of hope amid grim news as construction employment falls in most states, metro areas
The construction employment picture brightened slightly with 18 states adding construction jobs from April to May according to a new analysis of data released today by the Bureau of Labor Statistics (BLS). However, construction employment overall continued to decline, noted Ken Simonson, the chief economist for the Associated General Contractors of America.
| Aug 11, 2010
Thom Mayne unveils 'floating cube' design for the Perot Museum of Nature and Science in Dallas
Calling it a “living educational tool featuring architecture inspired by nature and science,” Pritzker Prize Laureate Thom Mayne and leaders from the Museum of Nature & Science unveiled the schematic designs and building model for the Perot Museum of Nature & Science at Victory Park. Groundbreaking on the approximately $185 million project will be held later this fall, and the Museum is expected to open by early 2013.
| Aug 11, 2010
American Concrete Institute forms technical committee on BIM for concrete structures
The American Concrete Institute (ACI) announces the formation of a new technical committee on Building Information Modeling (BIM) of Concrete Structures.
| Aug 11, 2010
Former Colorado Governor Bill Owens retained by PCL Construction as senior advisor
Bill Owens, former Colorado Governor, has been retained by PCL Construction as senior advisor for the company’s U.S. operations, headquartered in Denver, Colorado. The PCL family of companies collectively form the seventh largest contracting organization in the U.S. with major offices in 29 locations across North America, the Hawaiian Islands, and the Caribbean.
| Aug 11, 2010
10 tips for mitigating influenza in buildings
Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.
