National nonresidential construction spending was down 0.4% in August, 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 $859.3 billion for the month.
Spending was down on a monthly basis in 10 of 16 nonresidential subcategories. Private nonresidential spending was down 0.1%, while public nonresidential construction spending was down 0.8% in August.
“The disparity between high contractor confidence and worrisome macroeconomic outcomes persists,” said ABC National Chief Economist Anirban Basu. “According to ABC’s Construction Confidence Index and Backlog Indicator, many contractors remain in expansion mode and expect to experience rising sales and profit margins going forward. Many also expect their employment levels to be higher in six months.
“But the nonresidential construction data indicate that consistent spending growth remains elusive,” said Basu. “Given the rising costs of project financing and delivering construction services, that is not surprising. Arguably, it is contractor confidence that is counterintuitive.
“Reconciling strong microeconomic perspective with weak macroeconomic outcomes involves looking at segment-specific data,” said Basu. “While some segments like office and lodging continue to struggle in the context of behavioral shifts wrought by the pandemic, other segments are showing significant momentum. This is especially apparent in certain public construction segments like water/sewer, highway/street and flood control.”
Related Stories
Giants 400 | Feb 6, 2024
Top 40 Religious Facility Construction Firms for 2023
Crossland Construction, Haskell, Big-D Construction, Whiting-Turner, and JE Dunn Construction top BD+C's ranking of the nation's largest religious facility general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Giants 400 | Feb 5, 2024
Top 40 Entertainment Center, Cineplex, and Theme Park Construction Firms for 2023
ARCO Construction, Turner Construction, Whiting-Turner, PCL Construction Enterprises, and Balfour Beatty US top BD+C's ranking of the nation's largest entertainment center, cineplex, and theme park general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Giants 400 | Feb 5, 2024
Top 60 Shopping Mall, Big Box Store, and Strip Center Construction Firms for 2023
Whiting-Turner, Schimenti Construction, VCC, Ryan Companies US, and STO Building Group top BD+C's ranking of the nation's largest shopping mall, big box store, and strip center general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Laboratories | Feb 5, 2024
DOE selects design-build team for laboratory focused on clean energy innovation
JE Dunn Construction and SmithGroup will construct the 127,000-sf Energy Materials and Processing at Scale (EMAPS) clean energy laboratory in Colorado to create a direct path from lab-scale innovations to pilot-scale production.
Giants 400 | Feb 1, 2024
Top 40 Restaurant Construction Firms for 2023
Swinerton, Shawmut Design and Construction, Gray Construction, CM&B, and Andersen Construction top BD+C's ranking of the nation's largest restaurant general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Luxury Residential | Feb 1, 2024
Luxury 16-story condominium building opens in Chicago
The Chicago office of architecture firm Lamar Johnson Collaborative (LJC) yesterday announced the completion of Embry, a 58-unit luxury condominium building at 21 N. May St. in Chicago’s West Loop.
Products and Materials | Jan 31, 2024
Top building products for January 2024
BD+C Editors break down January's top 15 building products, from SloanStone Quartz Molded Sinks to InvisiWrap SA housewrap.
Giants 400 | Jan 29, 2024
Top 140 Office Core and Shell Architecture Firms for 2023
Gensler, Stantec, Page Southerland Page, Perkins&Will, and NBBJ top BD+C's ranking of the nation's largest office core and shell architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Giants 400 | Jan 29, 2024
Top 80 Workplace Interior Construction Firms for 2023
STO Building Group, HITT Contracting, Clune Construction, Hensel Phelps, and JRM Construction Management top BD+C's ranking of the nation's largest workplace interior and interior fitout general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Giants 400 | Jan 29, 2024
Top 100 Office Core and Shell Construction Firms for 2023
Turner Construction, AECOM, DPR Construction, Clark Group, and Clayco top BD+C's ranking of the nation's largest office core and shell general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
