Nonresidential construction spending expanded 0.4% on a monthly basis in December 2014, according to the Feb. 2 release from the U.S. Census Bureau.
Spending for the month totaled $627.1 billion on a seasonally adjusted, annualized basis, 5.9% higher than December 2013. The government also upwardly revised November's spending estimate from $617 billion to $624.8 billion and October's figure from $623 billion to $627.4 billion.
"Despite the slight expansion indicated in today's report, nonresidential construction lost some of its momentum during the final two months of 2014; however, this should represent only a minor dip in the industry's momentum headed into 2015," said Associated Builders and Contractors Chief Economist Anirban Basu. "It is possible that the past two spending reports indicate the U.S. economy is not as robust as many analysts believe but it is important to remember that 2014, as whole, was a solid year of recovery for the industry and total nonresidential construction spending was 6.6 % higher than in 2013.
"While some may surmise that the lack of momentum in nonresidential construction spending is related to the sharp fall in oil prices, this does not appear to be the case," said Basu. "Oil-related construction categories like transportation and manufacturing have retained their momentum while categories such as public safety and education have experienced declines in spending. It is also possible that the decline simply represents noise in the data; after all, October and November's figures have been revised higher while the December estimate remains preliminary."
Seven of 16 nonresidential construction subsectors posted increases in spending in December on a monthly basis:
- Communication construction spending expanded 2.5% for the month, but is down 9.5% for the year.
- Highway and street-related construction spending grew 2.5% in December and is up 10.5% compared to the same time last year.
- Power-related construction spending grew 1% for the month, but is 8.3% lower than the same time one year ago.
- Conservation and development-related construction spending grew 1.7% for the month and is up 24% on a yearly basis.
- Office-related construction spending grew 1.7% in December and is up 17.6% from the same time one year ago.
- Manufacturing-related spending expanded by 2% in December and is up 18.1% for the year.
- Amusement and recreation-related construction spending gained 1.9% on a monthly basis and is up 11.9% from the same time last year.
Spending in nine nonresidential construction subsectors declined in December on a monthly basis:
- Healthcare-related construction spending fell 1% for the month and is down 2.1% for the year.
- Education-related construction spending fell 1.2% for the month, but is up 3.9% on a year-over-year basis.
- Spending in the water supply category fell 0.3% from November but is 10.1% lower than at the same time last year.
- Construction spending in the transportation category fell 0.2% on a monthly basis, but has expanded by 9.5% on an annual basis.
- Public safety-related construction spending fell 4% on a monthly basis and is down 9.5% on a year-over-year basis.
- Commercial construction spending lost 1.7% in December, but is up 10.7% on a year-over-year basis.
- Religious spending fell 4.1% for the month and is down 1.3% from the same time last year.
- Lodging construction spending fell 1.4% on a monthly basis, but is up 18.3% on a year-over-year basis.
- Sewage and waste disposal-related construction spending fell 2% for the month, but has grown 10.5% on a 12-month basis.
To view the previous spending report, click here.
Related Stories
| Apr 18, 2012
Syska Hennessy re-launches Information and Communication Technology practice
The ICT practice will focus a blend of products including Information Technology, Security, Audiovisual, Building Automation, Fire Life Safety, Medical Communications and Intelligent Building Systems.
| Apr 18, 2012
Perkins+Will designs new complex for Johns Hopkins Hosptial
The Charlotte R. Bloomberg Children’s Center and the Sheikh Zayed Tower create transformative patient-centric care.
| Apr 18, 2012
BBS Architects & Engineers acquires Ward Associates
The merged companies’ on-going project portfolio valued at $220 million.
| Apr 17, 2012
Princeton Review releases “Guide to 322 Green Colleges”
The guide profiles 322 institutions of higher education in the U.S. and Canada that demonstrate notable commitments to sustainability in their academic offerings, campus infrastructure, activities and career preparation.
| Apr 17, 2012
FMI report examines federal construction trends
Given the rapid transformations occurring in the federal construction sector, FMI examines the key forces accelerating these changes, as well as their effect on the industry.
| Apr 17, 2012
Freese and Nichols awarded Malcolm Baldridge National Quality Award
Freese and Nichols is the only engineering and architecture firm to ever receive this recognition.
| Apr 17, 2012
Miramar College police substation in San Diego receives LEED Platinum
The police substation is the first higher education facility in San Diego County to achieve LEED Platinum Certification, the highest rating possible.
| Apr 17, 2012
Alberici receives 2012 ASA General Contractor of the Year award
Alberici has been honored by the ASA eight times in the award’s nineteen-year history--more than any other general contractor in its class.
| Apr 16, 2012
Freeland promoted to vice president at Heery International
Recently named to Building Design+Construction’s 40 Under 40 Class of 2012.
| Apr 16, 2012
University of Michigan study seeks to create efficient building design
The result, the researchers say, could be technologies capable of cutting the carbon footprint created by the huge power demands buildings place on the nation’s electrical grid.
