National nonresidential construction spending increased 0.1% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. Spending is up 18% over the past 12 months. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.07 trillion in June.
Spending increased on a monthly basis in 12 of the 16 nonresidential subcategories. Private nonresidential spending was virtually unchanged, while public nonresidential construction spending rose 0.3% in June.
“Nonresidential construction spending growth downshifted over the past two months,” said ABC Chief Economist Anirban Basu. “While stakeholders can expect ongoing spending growth in public nonresidential construction segments as more Infrastructure Investment and Jobs Act monies flow into the economy, private developer-driven activity appears to be drying up in the context of higher costs of capital and tighter credit conditions.
“Among other things, these dynamics will translate into larger spreads in performance among contractors,” said Basu. “While those that focus on public work stand to remain busy for years to come, those who specialize in meeting the needs of developers of office buildings, hotels and shopping centers are likely to struggle to support backlog going forward. The good news is that there remain private construction segments associated with rosier prospects, including manufacturing, data centers and healthcare.”
Related Stories
Market Data | Oct 5, 2020
Construction spending rises 1.4% in August as residential boom outweighs private nonresidential decline and flat public categories
Construction officials caution that demand for non-residential construction will continue to stagnate without new federal coronavirus recovery measures, including infrastructure and liability reform.
Market Data | Oct 5, 2020
7 must reads for the AEC industry today: October 5, 2020
Zaha Hadid unveils 2 Murray Road and the AEC industry is weathering COVID-19 better than most.
Market Data | Oct 2, 2020
AEC industry is weathering COVID-19 better than most
Nearly one-third of firms have had layoffs, more than 90% have experienced project delays.
Market Data | Oct 2, 2020
6 must reads for the AEC industry today: October 2, 2020
BIG imagines how to live on the moon and smart buildings stand on good data.
Market Data | Oct 1, 2020
Two-thirds of metros shed construction jobs from August 2019 to August 2020
Houston-The Woodlands-Sugar Land and Brockton-Bridgewater-Easton, Mass. have worst 12-month losses, while Indianapolis-Carmel-Anderson, Ind. and Niles-Benton Harbor, Mich. top job gainers.
Market Data | Oct 1, 2020
6 must reads for the AEC industry today: October 1, 2020
David Adjaye to receive 2021 Royal Gold Medal for Architecture and SOM reimagines the former Cook County Hospital.
Market Data | Sep 30, 2020
6 must reads for the AEC industry today: September 30, 2020
Heatherwick Studio designs The Cove for San Francisco and Washington, D.C.'s first modular apartment building.
Market Data | Sep 29, 2020
6 must reads for the AEC industry today: September 29, 2020
Renovation to Providence's downtown library is completed and Amazon to build 1,500 new last-mile warehouses.
Market Data | Sep 25, 2020
5 must reads for the AEC industry today: September 25, 2020
AIA releases latest 2030 Commitment results and news delivery robots could generate trillions for U.S. economy.
Market Data | Sep 24, 2020
6 must reads for the AEC industry today: September 24, 2020
SOM's new waterfront neighborhood and a portable restroom designed for mobility.
