flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Nonresidential Construction Spending falls in June, driven by public sector

Market Data

Nonresidential Construction Spending falls in June, driven by public sector

June’s weak construction spending report can be largely attributed to the public sector.


By ABC | August 2, 2017

Nonresidential construction spending fell by 2% on a monthly basis in June 2017, totaling $697 billion on a seasonally adjusted, annualized basis according to an analysis of U.S. Census Bureau data released today by Associated Builders and Contractors. June represents the first month during which spending has dipped below the $700 billion per year threshold since January 2016.

June’s weak construction spending report can be largely attributed to the public sector. Public nonresidential construction spending fell 5.4% for the month and 9.5% for the year, and all twelve public subsectors decreased for the month. Private nonresidential spending remained largely unchanged, increasing by 0.1% for the month and 1.1% for the year. April and May nonresidential spending figures were revised downward by 1.1% and 0.4%, respectively.

 

 

“Coming into the year, there were high hopes for infrastructure spending in America,” said ABC Chief Economist Anirban Basu. “The notion was that after many years of a lack of attention to public works, newfound energy coming from Washington, D.C., would spur confidence in federal funding among state and local transportation directors as well among others who purchase construction services. Instead, public construction spending is on the decline in America. Categories including public safety and flood control have experienced dwindling support for investment, translating into a nine percent decline in public construction spending over the past twelve months.

“On the other hand, several private segments continue to manifest strength in terms of demand for construction services,” said Basu. “At the head of the class are office construction, driven by a combination of job growth among certain office-space-using categories as well as lofty valuations, and communications, which is being driven largely by enormous demand for data center capacity.

 

 

“While there are certainly some parts of the nation experiencing significant levels of public construction, those areas have increasingly become the exception as opposed to the rule,” said Basu. “The more general and pervasive strength is in private segments. Based on recent readings of the architecture billings index and other key leading indicators, commercial contractors are likely to remain busy for the foreseeable future. The outlook for construction firms engaged in public work remains unclear.”

Related Stories

Market Data | Apr 21, 2020

5 must reads for the AEC industry today: April 21, 2020

IoT system helps contractors keep their distance and the multifamily market flattens.

Market Data | Apr 20, 2020

6 must reads for the AEC industry today: April 20, 2020

The continent's tallest living wall and NMHC survey shows significant delays in apartment construction.

Market Data | Apr 17, 2020

Construction employment declines in 20 states and D.C. in March, in line with industry survey showing growing job losses for the sector

New monthly job loss data foreshadows more layoffs amid project cancellations and state cutbacks in road projects as association calls for more small business relief and immediate aid for highway funding.

Market Data | Apr 17, 2020

5 must reads for the AEC industry today: April 17, 2020

Meet the 'AEC outsiders' pushing the industry forward and the world's largest Living Building.

Market Data | Apr 16, 2020

5 must reads for the AEC industry today: April 16, 2020

The SMPS Foundation and Building Design+Construction are studying the impact of the coronavirus pandemic on the ability to attain and retain clients and conduct projects and Saks Fifth Avenue plans a sanitized post-coronavirus opening.

Market Data | Apr 15, 2020

5 must reads for the AEC industry today: April 15, 2020

Buildings as "open source platforms" and 3D printing finds its grove producing face shields.

Market Data | Apr 14, 2020

6 must reads for the AEC industry today: April 14, 2020

A robot dog conducts site inspections and going to the library with little kids just got easier.

Market Data | Apr 13, 2020

6 must reads for the AEC industry today: April 13, 2020

How prefab can enable the AEC industry to quickly create new hospital beds and Abu Dhabi launches a design competition focused on reducing urban heat island effect.

Market Data | Apr 10, 2020

5 must reads for the AEC industry today: April 10, 2020

Designing for the next generation of student life and a mass timber Ramada Hotel rises in British Columbia.

Market Data | Apr 9, 2020

7 must reads for the AEC industry today: April 9, 2020

Urine could be the key to building in outer space and how to turn a high school into a patient care center in just over two weeks.

boombox1
boombox2
native1

More In Category

Healthcare Facilities

Watch on-demand: Key Trends in the Healthcare Facilities Market for 2024-2025

Join the Building Design+Construction editorial team for this on-demand webinar on key trends, innovations, and opportunities in the $65 billion U.S. healthcare buildings market. A panel of healthcare design and construction experts present their latest projects, trends, innovations, opportunities, and data/research on key healthcare facilities sub-sectors. A 2024-2025 U.S. healthcare facilities market outlook is also presented.




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021