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.”
![Nonres spending growth August](/sites/default/files/inline-images/Nonres%20spending%20growth%20August.jpeg)
![Nonres construction spending August](/sites/default/files/inline-images/Nonres%20construction%20spending%20August.jpeg)
Related Stories
Mixed-Use | Apr 27, 2023
New Jersey turns a brownfield site into Steel Tech, a 3.3-acre mixed-use development
In Jersey City, N.J., a 3.3-acre redevelopment project called Steel Tech will turn a brownfield site into a mixed-use residential high-rise building, a community center, two public plazas, and a business incubator facility. Steel Tech received site plan approval in recent weeks.
Multifamily Housing | Apr 27, 2023
Watch: Specifying materials in multifamily housing projects
A trio of multifamily housing experts discusses trends in materials in their latest developments. Topics include the need to balance aesthetics and durability, the advantages of textured materials, and the benefits of biophilia.
AEC Tech Innovation | Apr 27, 2023
Does your firm use ChatGPT?
Is your firm having success utilizing ChatGPT (or other AI chat tools) on your building projects or as part of your business operations? If so, we want to hear from you.
Concrete Technology | Apr 24, 2023
A housing complex outside Paris is touted as the world’s first fully recycled concrete building
Outside Paris, Holcim, a Swiss-based provider of innovative and sustainable building solutions, and Seqens, a social housing provider in France, are partnering to build Recygénie—a 220-unit housing complex, including 70 social housing units. Holcim is calling the project the world’s first fully recycled concrete building.
Multifamily Housing | Apr 21, 2023
Arlington County, Va., eliminates single-family-only zoning
Arlington County, a Washington, D.C., community that took shape in the 1950s, when single-family homes were the rule in suburbia, recently became one of the first locations on the East Coast to eliminate single-family-only zoning.
Green | Apr 21, 2023
Top 10 green building projects for 2023
The Harvard University Science and Engineering Complex in Boston and the Westwood Hills Nature Center in St. Louis are among the AIA COTE Top Ten Awards honorees for 2023.
Multifamily Housing | Apr 19, 2023
Austin’s historic Rainey Street welcomes a new neighbor: a 48-story mixed-used residential tower
Austin’s historic Rainey Street is welcoming a new neighbor. The Paseo, a 48-story mixed-used residential tower, will bring 557 apartments and two levels of retail to the popular Austin entertainment district, known for houses that have been converted into bungalow bars and restaurants.
Design Innovation Report | Apr 19, 2023
Reinforced concrete walls and fins stiffen and shade the National Bank of Kuwait skyscraper
When the National Bank of Kuwait first conceived its new headquarters more than a decade ago, it wanted to make a statement about passive design with a soaring tower that could withstand the extreme heat of Kuwait City, the country’s desert capital.
Design Innovation Report | Apr 19, 2023
HDR uses artificial intelligence tools to help design a vital health clinic in India
Architects from HDR worked pro bono with iKure, a technology-centric healthcare provider, to build a healthcare clinic in rural India.
Design Innovation Report | Apr 19, 2023
Meet The Hithe: A demountable building for transient startups
The Hithe, near London, is designed to be demountable and reusable. The 2,153-sf building provides 12 units of business incubator workspace for startups.