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
| Jan 4, 2011
Grubb & Ellis predicts commercial real estate recovery
Grubb & Ellis Company, a leading real estate services and investment firm, released its 2011 Real Estate Forecast, which foresees the start of a slow recovery in the leasing market for all property types in the coming year.
| Jan 4, 2011
Furniture Sustainability Standard - Approved by ANSI and Released for Distribution
BIFMA International recently announced formal American National Standards Institute (ANSI) approval and release of the ANSI/BIFMA e3-2010 Furniture Sustainability Standard. The e3 standard represents a structured methodology to evaluate the "sustainable" attributes of furniture products and constitutes the technical criteria of the level product certification program.
| Dec 28, 2010
Project of the Week: Community college for next-gen Homeland Security personnel
The College of DuPage, Glen Ellyn, Ill., began work on the Homeland Security Education Center, which will prepare future emergency personnel to tackle terrorist attacks and disasters. The $25 million, 61,100-sf building’s centerpiece will be an immersive interior street lab for urban response simulations.
| Dec 20, 2010
Architect Adrian D. Smith on zero-energy cities, new technologies, and high density.
Adrian D. Smith, FAIA, RIBA, is co-founder (with Gordon Gill) of Adrian Smith + Gordon Gill Architecture, Chicago. Previously, he was a design partner in the Chicago office of Skidmore, Owings & Merrill (1980-2003) and a consulting design partner from 2004 to 2006. His landmark structures include the Jin Mao Tower (Shanghai), Rowes Wharf (Boston), and Burj Khalifa (Dubai, U.A.E.), the world’s tallest structure. He recently collaborated with Gordon Gill to design the world’s first net-zero-energy skyscraper, Pearl River Tower, now nearing completion in Guangzhou, China. This account is based on his recent remarks at the Illinois Institute of Technology.
| Dec 17, 2010
BIM Tools Enhance Project Value
The Building Team for a renovation project at Georgia Tech uses BIM and 3D design tools to solve a complex millwork problem.
| Dec 17, 2010
Historic Rhode Island hotel reborn with modern amenities
The iconic Ocean House resort in Watch Hill, R.I., had to be torn down in 2005 when systemic deficiencies made restoration unfeasible. Centerbrook Architects and Planners, Centerbrook, Conn., designed a new version of the hotel, working with preservation societies to save or recreate favorite elements of the original building, and incorporating them into the contemporary structure. The new resort has 49 guest rooms and 23 residences, plus banquet halls, a corporate boardroom, a private clubroom, a spa and fitness center, an indoor lap pool, a bar, and the obligatory international croquet court. Dimeo Construction, Providence, R.I., was the construction manager.
| Dec 17, 2010
Gemstone-inspired design earns India’s first LEED Gold for a hotel
The Park Hotel Hyderabad in Hyderabad, India, was designed by Skidmore, Owings & Merrill to combine inspirations from the region’s jewelry-making traditions with sustainable elements.
| Dec 17, 2010
Condominium and retail building offers luxury and elegance
The 58-story Austonian in Austin, Texas, is the tallest residential building in the western U.S. Benchmark Development, along with Ziegler Cooper Architects and Balfour Beatty (GC), created the 850,000-sf tower with 178 residences, retail space, a 6,000-sf fitness center, and a 10th-floor outdoor area with a 75-foot saltwater lap pool and spa, private cabanas, outdoor kitchens, and pet exercise and grooming areas.
| Dec 17, 2010
Sam Houston State arts programs expand into new performance center
Theater, music, and dance programs at Sam Houston State University have a new venue in the 101,945-sf, $38.5 million James and Nancy Gaertner Performing Arts Center. WHR Architects, Houston, designed the new center to connect two existing buildings at the Huntsville, Texas, campus.
