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
| Jun 6, 2014
Must see: Can a floating city offset urban population growth in China?
AT Design Office has proposed a design for a floating city to offset increasing urban populations in China. To create the new city, a 10-square kilometer island would be made out of prefab blocks.
| Jun 6, 2014
KPF, Kevin Roche unveil design for 51-story Hudson Yards tower in NYC [slideshow]
Related Companies and Oxford Properties Group are teaming to develop Fifty Five Hudson Yards, the latest addition to the commercial office tower collection in the 28-acre Hudson Yards development—the largest private real estate development in the history of the U.S.
| Jun 6, 2014
Shipping container ship terminal completed in Spain
In Seville, Spain, architectural firms Hombre de Piedra and Buró4 have designed and completed a cruise ship terminal out of used shipping containers.
| Jun 5, 2014
International Parking Institute names best new parking structures
Winners include garages that are architectural delights, an airport's canopied parking atrium, and an environmentally friendly garage under America's oldest park.
| Jun 4, 2014
Want to design a Guggenheim? Foundation launches open competition for proposed Helsinki museum
This is the first time the Guggenheim Foundation has sought a design through an open competition. Anonymous submissions for stage one of the competition are due September 10, 2014.
| Jun 4, 2014
Market update: A difficult first quarter for construction spending comes to an end
This year's unusually difficult winter took its toll on construction activity. Nonetheless, first quarter spending for all the major groups was up compared to the same period in 2013.
| Jun 4, 2014
Construction team named for Atlanta Braves ballpark
A joint venture between Barton Malow, Brasfield & Gorrie, Mortenson Construction, and New South Construction will build the Atlanta Braves ballpark, which is scheduled to open in early 2017. Check out the latest renderings of the plan.
| Jun 3, 2014
Must see: World's tallest LEGO tower built in Budapest
The tower, built in front of St. Stephen's Basilica, is topped with a Rubik's cube and was built using thousands of blocks.
| Jun 3, 2014
Great leadership comes down to one thing
While it’s often said that strong leadership is an organization’s competitive advantage, is there a single characteristic that can predict which leaders will be most effective? SPONSORED CONTENT
| Jun 3, 2014
Libeskind's latest skyscraper breaks ground in the Philippines
The Century Spire, Daniel Libeskind's latest project, has just broken ground in Century City, southwest of Manila. It is meant to accommodate apartments and offices.
