Nonresidential construction spending fell 2% in January, which is the largest setback to spending since January 2014, according to the March 2 release from the U.S. Census Bureau.
However, at $614.1 billion on a seasonally adjusted, annualized basis, nonresidential construction spending still is 4.8% higher than one year ago. In addition, the spending estimate for December 2014 was revised downward from $627.1 billion to $627 billion and November's figure was revised from $624.8 billion to $621.9 billion.
"Interpreting January construction statistics is always tricky because the seasonal adjustments can never precisely reflect the impact of any given winter or weather system," said Associated Builders and Contractors Chief Economist Anirban Basu. "New England, among other places, was hit heavily by snow in January and this could explain the monthly decline in nonresidential construction spending.
"Additionally, nonresidential construction spending enjoyed positive momentum through the end of 2014 and, until January, had registered spending growth in five of the previous six months," Basu said. "It is also possible that the West Coast port slowdown impacted construction volumes, including by reducing material availability."
Three of 16 nonresidential construction subsectors posted increases in spending in January on a monthly basis.
- Communication construction spending gained 0.7% for the month, but is down 1.5% for the year.
- Highway- and street-related construction spending grew 0.2% in January and is up 8.7% compared to the same time last year.
- Manufacturing-related spending expanded by 4% in January and is up 22.5% for the year.
Spending in 13 nonresidential construction subsectors declined in January.
- Health care-related construction spending fell 2.3% for the month and is down 2.5% for the year.
- Education-related construction spending fell 3.6% for the month and 0.4% on a year-over-year basis.
- Spending in the water supply category dropped 7.5% from December, but is 3.3% higher than at the same time last year.
- Construction spending in the transportation category fell 1.7% on a monthly basis, but has expanded 8.9% on an annual basis.
- Public safety-related construction spending declined 6.7% on a monthly basis and is down 14.5% on a year-over-year basis.
- Commercial construction spending decreased 5.7% in January, but is up 14% on a year-over-year basis.
- Religious spending fell 11.4% for the month and is down 12.4% compared to the same time last year.
- Lodging construction spending is down 4.4% on a monthly basis, but is up 18.2% on a year-over-year basis.
- Sewage and waste disposal-related construction spending shed 7.5% for the month, but has grown 16% on a 12-month basis.
- Power-related construction spending fell 1.1% for the month and is 13.2% lower than at the same time one year ago.
- Conservation and development-related construction spending fell 5.1% for the month but is up 25.6% on a yearly basis.
- Office-related construction spending declined 1.7% in January but is up 13.7% from the same time one year ago.
- Amusement and recreation-related construction spending fell 3.2% on a monthly basis but is up 19.3% from the same time last year.
- Sewage and waste disposal-related construction spending fell 2% for the month, but has grown 10.5% on a 12-month basis.
Related Stories
| Jun 23, 2014
Lilker Associates launches Lighting Group; David Cyr announced as Director
New division rounds out building systems services offerings for the Manhattan-based consulting firm.
| Jun 23, 2014
Berlin House of One will accommodate Muslims, Jews, and Christians
The building will rise on the ruins of a 13th-century Christian church that was damaged during WWII and eventually demolished.
| Jun 22, 2014
5 ways to improve your firm’s branding efforts
Establishing, conveying, and maintaining a powerful brand is a critical component of an AEC firm’s marketing strategy. Here are five strategies to make a greater impact with your firm’s branding efforts.
| Jun 20, 2014
CM firm Gafcon promotes Ron Takaki to VP/Project Operations
Executive holds more than 35 years experience in leading architectural, engineering, construction teams in large, complex project designs
| Jun 20, 2014
Sterling Bay pulled on board for Chicago Old Main Post Office project
Sterling Bay Cos. and Bill Davies' International Property Developers North America partner up for a $500 million restoration of Chicago's Old Main Post Office
| Jun 20, 2014
U.S. Energy Information Administration releases preliminary Commercial Buildings Energy Consumption Survey results
Federal survey project shows that commercial-building floorspace has grown 22% since 2003; energy-use data will be released in Spring 2015.
| Jun 20, 2014
Batson-Cook appoints Rygiel VP/Business Development for Tampa office
Rygiel will be responsible for cultivating and maintaining the contractor's business relationships in the state of Florida, concentrating on expanding the firm’s presence in the state’s private-development sector.
| Jun 19, 2014
First Look: 10 Design unveils new luxury apartments plan in Dubai
The Seventh Heaven complex features a stepped form that will offer stunning views of the Dubai skyline.
| Jun 19, 2014
First look: JDS Architects' roller-coaster-like design for Istanbul waterfront development
The development's wavy and groovy design promises unobstructed views of the Marmara Sea for every unit.
| Jun 19, 2014
Singapore's 'Tree House' vertical gardens break Guinness World Record
The high-rise development will have a 24,638-sf vertical garden, breaking a Guinness World Record.