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

Students walk into a dormitory or college campus, viewed from the back
Student Housing | Feb 21, 2024

Student housing preleasing continues to grow at record pace

Student housing preleasing continues to be robust even as rent growth has decelerated, according to the latest Yardi Matrix National Student Housing Report.

AIA Architecture Billings Index, January 2024
Architects | Feb 21, 2024

Architecture Billings Index remains in 'declining billings' state in January 2024

Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.

Facade of a multi-apartment residential building with windows and balconies
Multifamily Housing | Feb 14, 2024

Multifamily rent remains flat at $1,710 in January

The multifamily market was stable at the start of 2024, despite the pressure of a supply boom in some markets, according to the latest Yardi Matrix National Multifamily Report.

AI student housing dorm room
Student Housing | Feb 13, 2024

Student housing market expected to improve in 2024

The past year has brought tough times for student housing investment sales due to unfavorable debt markets. However, 2024 offers a brighter outlook if debt conditions improve as predicted.

The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of January 2024, Image by Hans from Pixabay
Contractors | Feb 13, 2024

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

Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.4 months in January, according to an ABC member survey conducted from Jan. 22 to Feb. 4. The reading is down 0.6 months from January 2023.

National Construction Starts by number of units since 2017 graph overlay on multifamily development
Industry Research | Feb 8, 2024

New multifamily development in 2023 exceeded expectations

Despite a problematic financing environment, 2023 multifamily construction starts held up “remarkably well” according to the latest Yardi Matrix report.

BD+C market intelligence report for february 2024
Market Data | Feb 7, 2024

New download: BD+C's February 2024 Market Intelligence Report

Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.

Green 2-seat Sofa in brick apartment
Industry Research | Jan 31, 2024

ASID identifies 11 design trends coming in 2024

The Trends Outlook Report by the American Society of Interior Designers (ASID) is the first of a three-part outlook series on interior design. This design trends report demonstrates the importance of connection and authenticity.

Dallas City skyline at sunset, Texas, USA
Apartments | Jan 26, 2024

New apartment supply: Top 5 metros delivering in 2024

Nationally, the total new apartment supply amounts to around 1.4 million units—well exceeding the apartment development historical average of 980,000 units.

Neighbors keeping personal items in rental self-storage units. Man and women holding boxes. Concept of self storage unit, small mini warehouse, rental garage. Vector illustration in flat design
Self-Storage Facilities | Jan 25, 2024

One-quarter of self-storage renters are Millennials

Interest in self-storage has increased in over 75% of the top metros according to the latest StorageCafe survey of self-storage preferences. Today, Millennials make up 25% of all self-storage renters.

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