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

𝕏

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

Construction worker

Market Data | Dec 22, 2021

Two out of three metro areas add construction jobs from November 2020 to November 2021

Construction employment increased in 237 or 66% of 358 metro areas over the last 12 months.

construction site

Market Data | Dec 17, 2021

Construction jobs exceed pre-pandemic level in 18 states and D.C.

Firms struggle to find qualified workers to keep up with demand.

Construction site

Market Data | Dec 15, 2021

Widespread steep increases in materials costs in November outrun prices for construction projects

Construction officials say efforts to address supply chain challenges have been insufficient.

Architcture

Market Data | Dec 15, 2021

Demand for design services continues to grow

Changing conditions could be on the horizon.

Construction Site

Market Data | Dec 5, 2021

Construction adds 31,000 jobs in November

Gains were in all segments, but the industry will need even more workers as demand accelerates.

Professionals on a construction site

Market Data | Dec 5, 2021

Construction spending rebounds in October

Growth in most public and private nonresidential types is offsetting the decline in residential work.

Spending Graph

Market Data | Dec 5, 2021

Nonresidential construction spending increases nearly 1% in October

Spending was up on a monthly basis in 13 of the 16 nonresidential subcategories.

Construction site

Market Data | Nov 30, 2021

Two-thirds of metro areas add construction jobs from October 2020 to October 2021

The pandemic and supply chain woes may limit gains.

Washington, D.C.

Market Data | Nov 22, 2021

Only 16 states and D.C. added construction jobs since the pandemic began

Texas, Wyoming have worst job losses since February 2020, while Utah, South Dakota add the most.

Price Ineex

Market Data | Nov 10, 2021

Construction input prices see largest monthly increase since June

Construction input prices are 21.1% higher than in October 2020.

Top Articles

Market Data

Construction spending expected to rise, despite labor and materials snags

K-12 Schools

A Cleveland suburb opens a $31.7 million new middle school and renovated high school

MFPRO+ News

More permits for ADUs than single-family homes issued in San Diego

More In Category

Market Data

Construction spending expected to rise, despite labor and materials snags

In the first half of 2024, construction costs stabilized. And through the remainder of this year, total cost growth is projected to be modest, and matched by an overall increase in construction spending. That prediction can be found in JLL’s 2024 Midyear Construction Update and Reforecast.

Healthcare Facilities

New download: BD+C's 2024 Healthcare Annual Report

Welcome to Building Design+Construction’s 2024 Healthcare Annual Report. This free 66-page special report is our first-ever “state of the state” update on the $65 billion healthcare construction sector.

Contractors

The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of June 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in June, according to an ABC member survey conducted June 20 to July 3. The reading is down 0.5 months from June 2023.

Office Buildings

Office vacancy peak of 22% to 28% forecasted for 2026

The work from home trend will continue to put pressure on the office real estate market, with peak vacancy of between 22% and 28% in 2026, according to a forecast by Moody’s.

Most Popular Content