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
| Aug 24, 2011
Deadline Extended: 2012 "Best AEC Firms to Work For” Awards
We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. In other words, this awards program will recognize those AEC firms that nurture and develop their most valuable asset—their people.
| Aug 19, 2011
How and why AEC professionals choose flooring systems
Design and construction professionals who completed our flooring survey had strong opinions about their preferred flooring type.
| May 25, 2011
Register today for BD+C’s June 8th webinar on restoration and reconstruction projects
Based on new and award-winning building projects, this webinar presents our “expert faculty” to examine the key issues affecting project owners, designers and contractors in case studies ranging from gut renovations and adaptive reuses to restorations and retrofits.
| May 25, 2011
Developers push Manhattan office construction
Manhattan developers are planning the city's biggest decade of office construction since the 1980s, betting on rising demand for modern space even with tenants unsigned and the availability of financing more limited. More than 25 million sf of projects are under construction or may be built in the next nine years.
| May 25, 2011
Olympic site spurs green building movement in UK
London's environmentally friendly 2012 Olympic venues are fuelling a green building movement in Britain.
| May 19, 2011
BD+C’s "40 Under 40" winners for 2011
The 40 individuals profiled here are some of the brightest stars in the AEC universe—and they’re under the age of 40. These young architects, engineers, contractors, designers, and developers stood out among a group of 164 outstanding entrants in our sixth annual “40 Under 40” competition.
| May 18, 2011
Stone Construction acquires Harden Constructors
The design-build firm Stone Construction LLC has acquired Harden Constructors Inc. The two companies have merged their full-service project design and construction capabilities to assist owners of office, industrial, manufacturing, warehouse, retail, educational and religious facilities, and developers of such facilities in prime office parks.
| May 18, 2011
8 Tips for Designing Wood Trusses
Successful metal-plate-connected wood truss projects require careful attention to detail from Building Team members.