flexiblefullpage

HORIZONTV FEATURING BD+C: WATCH EPISODES ON DEMAND AT HORIZONTV

Menu View Full Menu
Subscribe Here
billboard
interstitial1
catfish1
Currently Reading

Nonresidential construction spending falters in November

Market Data

Nonresidential construction spending falters in November

Only 4 of 16 subsectors showed gains

By John Caulfield, Senior Editor | January 5, 2016

The latter months of 2015 showed signs that construction spending's momentum had leveled off. Courtesy of Pixabay

Continue Reading

Spending for nonresidential construction, which had been on the uptick for most of 2015, stumbled in the latter months. 

The Census Bureau revised downward its spending estimates for September and October, and reported that spending in November stood at a seasonally adjusted annualized rate of $688.1 billion, down 0.8% from the lower October figure. 
 
Even though it was still up from November 2014's annualized rate of around $625 billion, November 2015 was the industry's worst-performing month since April 2015. 
 
Anirban Basu, chief economist for Associated Builders and Contractors (ABC), called Census's latest data “ominous,” because it showed that spending momentum “has softened considerably in recent months.” He added that ABC's surveys of construction executives paint a more dire picture of the industry's state.
 
 
 
 
“The most recent data suggest that while 2016 may be a year of nonresidential construction spending growth, it may not provide the degree of momentum that characterized much of 2015,” Basu said. He pointed specifically to construction related to the manufacturing sector, which in November was off 28.8% from November 2014. He believes this downturn reflects falling exports and stiffer competition from foreign producers.
 
ABC's analysis of Census's data found that only four of 16 construction subsectors showed positive gains in November: Communication, which was up 4.4% over October and 27.8% over November 2014; Education (up 3.9% and 13.8%), Office (1.6% and 20.5%), and Transportation (0.2% and 3.1%).
 
Conversely, spending for Public Safety projects fell 8.1% on a monthly basis, and 5.2% year over year. Even Healthcare, which had been the industry's shining light recently (it was up 5% from November 2014), slipped by 0.1% from October 2015.

Tags

Related Stories

Consensus construction spending
Market Data | Jul 21, 2022

Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023

Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA). 

Design build
Building Team | Jul 18, 2022

Understanding the growing design-build market

FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.

Construction Spending
Market Data | Jul 1, 2022

Nonresidential construction spending slightly dips in May, says ABC

National nonresidential construction spending was down by 0.6% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.

Rising rent rates
Market Data | Jun 30, 2022

Yardi Matrix releases new national rent growth forecast

Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.

Architecture Billings Index Design Services
Market Data | Jun 22, 2022

Architecture Billings Index slows but remains strong

Architecture firms reported increasing demand for design services in May, according to a new report today from The American Institute of Architects (AIA).

Data analytics in construction
Building Team | Jun 17, 2022

Data analytics in design and construction: from confusion to clarity and the data-driven future

Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.

ABC Construction Backlog Indicator
Market Data | Jun 15, 2022

ABC’s construction backlog rises in May; contractor confidence falters

Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.

AIA ABI Design Services
Market Data | May 18, 2022

Architecture Billings Index moderates slightly, remains strong

For the fifteenth consecutive month architecture firms reported increasing demand for design services in April, according to a new report today from The American Institute of Architects (AIA).

Construction Input Price
Market Data | May 12, 2022

Monthly construction input prices increase in April

Construction input prices increased 0.8% in April compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.

Hybrid Work
Market Data | May 10, 2022

Hybrid work could result in 20% less demand for office space

Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.

boombox1
boombox2

Top Articles

native1

More In Category

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