August marked the seventh consecutive month nonresidential construction spending expanded according to an Oct. 1 release supplied by the U.S. Census Bureau. Nonresidential spending totaled $696.3 billion on a seasonally adjusted, annualized basis in August, a 0.3% increase from the previous month and a 12.3% increase from the same time last year. The Census Bureau downwardly revised July's estimate from $696.1 billion to $694.1 billion.
"Job growth is fueling both consumer spending and the absorption of space, all of this is good for construction spending," said Associated Builders and Contractors Chief Economist Anirban Basu. "While construction spending has expanded by more than 12% over the past year, that is not to suggest that macroeconomic risks do not abound. Interest rates are likely to head higher going forward and there is no guarantee that energy prices will remain subdued. While low energy prices have caused some regional economies to slow, investment and spending has been bolstered in others.
"Recently, much attention has been focused on the global economic slowdown and the volatility of financial markets," said Basu. "The Federal Reserve's recent decision not to increase interest rates supported a developing narrative which suggests that the weakness now apparent in much of the world will eventually bring the U.S. into another recession."
Eight of 16 nonresidential construction sectors experienced spending increases in August on a monthly basis:
- Lodging-related construction spending expanded 2.8% on a monthly basis and 41.4% on a year–over-year basis
- Health care-related construction spending grew 1.9% on a monthly basis and 9.1% on a yearly basis
- Public safety-related construction spending expanded 0.4% in August and is 0.2% higher than last year
- Spending in the amusement and recreation category grew 1.3% for the month and 34.7% from the same time last year
- Transportation-related construction spending grew 1.4% in August and is up 12.1% from the same time last year
- Communication-related construction spending is up 0.4% for the month and 11.5% on a yearly basis
- Power-related construction spending expanded 1.2% month-over month but is down 6.7% year-over-year
- Manufacturing-related construction spending expanded 1.3% on a monthly basis and 57.6% on a yearly basis
Spending in half of the nonresidential construction subsectors fell in August on a monthly basis:
- Highway and street-related construction spending fell by 0.6% in August but is up 7% from the same time last year
- Sewage and waste disposal-related construction spending is 0.3% lower from July 2015 but 9% higher than in August 2014
- Water supply-related construction spending is down 0.2% for the month but is up 4.9% over the past 12 months
- Conservation and development-related construction spending fell 0.9% for the month but is up 12.7% from the same time last year
- Office-related construction spending dipped 0.2% lower in August but is up 25.4% since the same time last year
- Spending in the commercial category fell 1.2% for the month but grew 1.3% over the past 12 months
- Educational-related construction spending inched 0.6% lower for the month but is up 5.0% year-over-year
- Religious-related construction spending fell 9.4% for the month and 4.6% from August 2014
To view the previous spending report, click here.
Related Stories
Codes and Standards | Feb 12, 2015
ASHRAE, USGBC, IES consider biomass requirements in green building standard
The proposal would add biomass to approved renewables.
Codes and Standards | Feb 12, 2015
New Appraisal Institute form aids in analysis of green commercial building features
The Institute’s Commercial Green and Energy Efficient Addendum offers a communication tool that lenders can use as part of the scope of work.
Office Buildings | Feb 12, 2015
Is Houston headed for an office glut?
More than 13 million sf could be completed this year, adding to this metro’s double-digit vacancy woes.
Modular Building | Feb 12, 2015
New shipping container complex begins construction in Albuquerque
The Green Jeans Farmery already has a hydroponic farm component courtesy of owner and entrepreneur Roy Solomon.
Transit Facilities | Feb 12, 2015
Gensler proposes network of cycle highways in London’s unused underground
Unused tube lines would host pedestrian paths, cycle routes, cultural spaces, and retail outlets.
Healthcare Facilities | Feb 11, 2015
Primer: Using 'parallel estimating' to pinpoint costs on healthcare construction projects
As pressure increases to understand capital cost prior to the first spade touching dirt, more healthcare owners are turning to advanced estimating processes, like parallel estimating, to improve understanding of exposure, writes CBRE Healthcare's Andrew Sumner.
Transportation & Parking Facilities | Feb 11, 2015
11 of the nation’s best ‘Complete Streets’ policies of 2014
Austin, Texas, and Troy, N.Y., are among the cities with the strongest safe streets policies, according to a new report.
Sponsored | Roofing | Feb 11, 2015
New school blends with local architecture using Petersen metal roof
Perkins Eastman in Stamford, Conn., designed the school to emphasize and integrate the International Baccalaureate curriculum throughout.
Mixed-Use | Feb 11, 2015
Developer plans to turn Eero Saarinen's Bell Labs HQ into New Urbanist town center
Designed by Eero Saarinen in the late 1950s, the two-million-sf, steel-and-glass building was one of the best-funded and successful corporate research laboratories in the world.
BIM and Information Technology | Feb 10, 2015
Google's 3D scanning camera leaves the lab
Google is said to be partnering with LG to create a version of the technology for public release sometime this year.