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
Giants 400 | Aug 29, 2022
Top 50 Senior Living Facility Contractors + CM Firms for 2022
Whiting-Turner, Ryan Companies US, W.E. O'Neil Construction, and KBE Building Corp. top the ranking of the nation's largest senior living facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 29, 2022
Top 40 Student Housing Facility Contractors + CM Firms for 2022
J.H. Findorff & Son, PCL Construction Enterprises, Juneau Construction, and Sundt Construction top the ranking of the nation's largest student housing facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Aug 29, 2022
Montana becomes first U.S. state to approve 3D printing in construction
Montana is the first U.S. state to give broad regulatory approval for 3D printing in building construction.
| Aug 26, 2022
Idaho Building Code Board considers gutting large part of state energy code
Idaho Building Code Board considers gutting large part of state energy code.
Giants 400 | Aug 25, 2022
Top 100 Apartment and Condominium Contractors for 2022
Clark Group, Suffolk Construction, AECOM, and Lendlease top the ranking of the nation's largest apartment and condominium contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
University Buildings | Aug 25, 2022
Higher education, striving for ‘normal’ again, puts student needs at the center of project planning
Sustainability and design flexibility are what higher education clients are seeking consistently, according to the dozen AEC Giants contacted for this article. “University campuses across North America are commissioning new construction projects designed to make existing buildings and energy systems more sustainable, and are building new flexible learning space that bridge the gap between remote and in-person learning,” say Patrick McCafferty, Arup’s Education Business Leader–Americas East region, and Matt Humphries, Education Business Leader in Canada region.
| Aug 25, 2022
New York City’s congestion pricing aims to reduce traffic, cut carbon
Officials recently released an environmental assessment that analyzes seven different possible pricing schemes for New York City’s congestion pricing program.
Sponsored | BD+C University Course | Aug 24, 2022
Solutions for cladding performance and supply issues
This course covers design considerations and cladding assembly choices for creating high-performance building envelopes — a crucial element in healthy, energy-efficient buildings.
| Aug 24, 2022
California’s investment in ‘community schools’ could transform K-12 education
California has allocated $4.1-billion to develop ‘community schools’ that have the potential to transform K-12 education.
| Aug 24, 2022
Architecture Billings Index slows but remains healthy
For the eighteenth consecutive month architecture firms reported increasing demand for design services in July, according to a new report today from The American Institute of Architects (AIA).
