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
Multifamily Housing | Feb 1, 2023
Step(1) housing: A new approach to sheltering unhoused people in Redwood City, Calif.
A novel solution to homelessness will open soon in Redwood City, Calif. The compact residential campus employs modular units to create individual sleeping units, most with private bathrooms. The 240 units of housing will be accompanied by shared services and community spaces. Instead of the congregate dorm-style shelters found in many U.S. cities, this approach gives each resident a private, lockable, conditioned sleeping space.
Codes and Standards | Feb 1, 2023
New Jersey to allow private firms to conduct construction inspections
New Jersey recently passed a law that will allow towns to supplement construction code enforcement with help from the private sector. The legislation, which received bipartisan support, also allows municipalities to enter into shared service agreements with neighboring towns for construction inspections.
Sports and Recreational Facilities | Feb 1, 2023
University of Houston opens 'game changer' wellness center at downtown campus
The University of Houston-Downtown (UHD) recently opened its new Wellness & Success Center (WSC). The $39 million, 75,000 sf facility greatly improves the quality of the school’s exercise programs and areas dedicated to them. It also establishes a dynamic core and recognizable landmark for fostering and nurturing an on-campus community, according to a news release from SmithGroup, which designed the building along with HarrisonKornberg Architects.
Giants 400 | Feb 1, 2023
2022 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
Populous, DLR Group, KPFF, Arup, and Turner Construction head BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report. Building types include museums, public libraries, performing arts centers, and concert venues.
Giants 400 | Jan 31, 2023
2022 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, CallisonRTKL, Kimley-Horn, Henderson Engineers, Whiting-Turner Contracting, and Turner Construction top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Giants 400 | Jan 31, 2023
2022 Government Sector Giants: Top architecture, engineering, and construction firms in the U.S. government buildings sector
Gensler, Jacobs, Hensel Phelps, and Page top BD+C's rankings of the nation's largest government sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.
Healthcare Facilities | Jan 31, 2023
How to solve humidity issues in hospitals and healthcare facilities
Humidity control is one of the top mechanical issues healthcare clients face. SSR's Lee Nordholm, PE, LEED AP, offers tips for handling humidity issues in hospitals and healthcare facilities.
University Buildings | Jan 30, 2023
How wellness is reshaping college recreation centers
Moody Nolan, a specialist in the design of college recreation centers, has participated in the evolution toward wellness on college campuses.
University Buildings | Jan 27, 2023
Ozarks Technical Community College's advanced manufacturing center is first-of-a-kind in region
The new Robert W. Plaster Center for Advanced Manufacturing at Ozarks Technical Community College in Springfield, Mo., is a first-of-a-kind educational asset in the region. The 125,000-sf facility will educate and train a new generation in high tech, clean manufacturing and fabrication.
Mass Timber | Jan 27, 2023
How to set up your next mass timber construction project for success
XL Construction co-founder Dave Beck shares important preconstruction steps for designing and building mass timber buildings.