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
| Oct 13, 2010
Thought Leader
Sundra L. Ryce, President and CEO of SLR Contracting & Service Company, Buffalo, N.Y., talks about her firm’s success in new construction, renovation, CM, and design-build projects for the Navy, Air Force, and Buffalo Public Schools.
| Oct 13, 2010
Hospital tower gets modern makeover
The Wellmont Holston Valley Medical Center in Kingsport, Tenn., expanded its D unit, a project that includes a 243,443-sf addition with a 12-room operating suite, a 36-bed intensive care unit, and an enlarged emergency department.
| Oct 13, 2010
Modern office design accentuates skyline views
Intercontinental|Exchange, a Chicago-based financial firm, hired design/engineering firm Epstein to create a modern, new 31st-floor headquarters.
| Oct 13, 2010
Hospital and clinic join for better patient care
Designed by HGA Architects and Engineers, the two-story Owatonna (Minn.) Hospital, owned by Allina Hospitals and Clinics, connects to a newly expanded clinic owned by Mayo Health System to create a single facility for inpatient and outpatient care.
| Oct 13, 2010
Biloxi’s convention center bigger, better after Katrina
The Mississippi Coast Coliseum and Convention Center in Biloxi is once again open for business following a renovation and expansion necessitated by Hurricane Katrina.
| Oct 13, 2010
Tower commemorates Lewis & Clark’s historic expedition
The $4.8 million Lewis and Clark Confluence Tower in Hartford, Ill., commemorates explorers Meriwether Lewis and William Clark at the point where their trek to the Pacific Ocean began—the confluence of the Mississippi and Missouri Rivers.
| Oct 13, 2010
Maryland replacement hospital expands care, changes name
The new $120 million Meritus Regional Medical Center in Hagerstown, Md., has 267 beds, 17 operating rooms with high-resolution video screens, a special care level II nursery, and an emergency room with 53 treatment rooms, two trauma rooms, and two cardiac rooms.
| Oct 13, 2010
Campus building gives students a taste of the business world
William R. Hough Hall is the new home of the Warrington College of Business Administration at the University of Florida in Gainesville. The $17.6 million, 70,000-sf building gives students access to the latest technology, including a lab that simulates the stock exchange.
| Oct 13, 2010
Science building supports enrollment increases
The new Kluge-Moses Science Building at Piedmont Virginia Community College, in Charlottesville, is part of a campus update designed and managed by the Lukmire Partnership. The 34,000-sf building is designed to be both a focal point of the college and a recruitment mechanism to get more students enrolling in healthcare programs.
| Oct 13, 2010
Cancer hospital plans fifth treatment center
Construction is set to start in December on the new Cancer Treatment Centers of America’s $55 million hospital in Newnan, Ga. The 225,000-sf facility will have 25 universal inpatient beds, two linear accelerator vaults, an HDR/Brachy therapy vault, and a radiology and imaging unit.