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

Market Data | Jun 22, 2021

Architecture billings continue historic rebound

AIA’s Architecture Billings Index (ABI) score for May rose to 58.5 compared to 57.9 in April.

Market Data | Jun 17, 2021

Commercial construction contractors upbeat on outlook despite worsening material shortages, worker shortages

88% indicate difficulty in finding skilled workers; of those, 35% have turned down work because of it.

Market Data | Jun 16, 2021

Construction input prices rise 4.6% in May; softwood lumber prices up 154% from a year ago

Construction input prices are 24.3% higher than a year ago, while nonresidential construction input prices increased 23.9% over that span.

Market Data | Jun 16, 2021

Producer prices for construction materials and services jump 24% over 12 months

The 24.3% increase in prices for materials used in construction from May 2020 to last month was nearly twice as great as in any previous year

Market Data | Jun 15, 2021

ABC’s Construction Backlog inches higher in May

Materials and labor shortages suppress contractor confidence.

Market Data | Jun 11, 2021

The countries with the most green buildings

As the country that set up the LEED initiative, the US is a natural leader in constructing green buildings.

Market Data | Jun 7, 2021

Construction employment slips by 20,000 in May

Seasonally adjusted construction employment in May totaled 7,423,000.

Market Data | Jun 2, 2021

Construction employment in April lags pre-covid February 2020 level in 107 metro areas

Houston-The Woodlands-Sugar Land and Odessa, Texas have worst 14-month construction job losses.

Market Data | Jun 1, 2021

Nonresidential construction spending decreases 0.5% in April

Spending was down on a monthly basis in nine of 16 nonresidential subcategories.

Market Data | Jun 1, 2021

Nonresidential construction outlays drop in April to two-year low

Public and private work declines amid supply-chain woes, soaring costs.

Top Articles

Government Buildings

GSA releases updated standards to move federal buildings toward zero emissions

Adaptive Reuse

Adaptive reuse revives a former warehouse in St. Louis

MFPRO+ News

Report outlines how Atlanta can collaborate with private sector to spur more housing construction

More In Category

MFPRO+ Research

Apartment completions to surpass 500,000 for first time ever

While the U.S. continues to maintain a steady pace of delivering new apartments, this year will be one for the record books.

Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.

Office Buildings

U.S. commercial foreclosures increased 48% in June from last year

The commercial building sector continues to be under financial pressure as foreclosures nationwide increased 48% in June compared to June 2023, according to ATTOM, a real estate data analysis firm.

Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers.

Most Popular Content