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
| Feb 23, 2012
Federal budget cuts put major building projects on hold
A plan to build the National Bio and Agro-Defense Facility in Kansas is among several major building projects in jeopardy after the Obama administration’s 2013 budget was unveiled. The budget would cut all construction spending for the facility.
| Feb 23, 2012
Regulators investigating construction accident at World Trade Center
The New York Port Authority and the city’s fire and building departments are investigating an accident at the World Trade Center construction site in lower Manhattan after a crane dropped steel beams that fell about 40 stories onto the truck that delivered them.
| Feb 23, 2012
New Virginia statewide building code goes into effect March 1
After March 1, all building plans in Virginia must adhere to the 2009 code that was adopted a year ago.
| Feb 22, 2012
ACI BIM manual for cast-in-place concrete in development
The improved communication, coordination, and collaboration afforded by BIM implementation have already been shown to save time and money in projects.
| Feb 22, 2012
Siemens earns LEED certification for Maryland office
The Beltsville facility, which also earned the ENERGY STAR Label for energy performance, implemented a range of energy efficiency, water conservation and sustainable operations measures as part of the certification process.
| Feb 22, 2012
CISCO recognizes Gilbane for quality construction, design, and safety
The project employed more than 2,000 tradespeople for a total of 2.1 million hours worked – all without a single lost-time accident.
| Feb 22, 2012
Perkins Eastman expands portfolio in China and Vietnam
Recent awards, project progress signal ongoing commitment to region.
| Feb 22, 2012
Suffolk awarded Boston post office renovation project
Renovation of art deco landmark will add 21,000 square feet of retail and 110 new parking spaces.
| Feb 21, 2012
Top 10 trends in commercial lenders’ environmental due diligence
EDR offers free webinar on February 22, 2012 at 1 p.m.
| Feb 21, 2012
Three Goettsch leaders elevated to AIA College of Fellows
Honor recognizes significant contributions to architecture and society.