National nonresidential construction spending was up by 0.5% in September, 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 $883.9 billion for the month.
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories. Private nonresidential spending was up 1.0%, while public nonresidential construction spending was down 0.3% in September.
“The disconnect between contractor confidence, which remains elevated according to ABC’s Construction Confidence Index, and nonresidential construction spending continues,” said ABC Chief Economist Anirban Basu. “While nonresidential construction spending is below February 2020 levels, many contractors report operating at capacity. This has much to do with worker and equipment shortages.
“Many projects under construction in America began prior to the rapid increase in borrowing costs that started earlier this year,” said Basu. “With interest rates on the rise and the economy expected to slow, nonresidential spending will likely decline further, at least in segments vulnerable to economic downturns. Contractors that focus on public construction work stand to be in far better shape given recent federal legislation and excess pandemic relief funds waiting to be spent by many state and local governments.”
Related Stories
Sponsored | Building Team | Sep 21, 2017
The 11 project performance metrics that keep you on track
Projects are the backbone of the way you do business. Isn’t it time that you step up their analysis?
Architects | Aug 16, 2017
Staffelbach joins DLR Group
The firm will be merging operations immediately with full integration and the name change to DLR Group| Staffelbach effective October 2.
Multifamily Housing | Aug 14, 2017
Co-living: The next real estate disruptor or niche market?
From a practicality standpoint, co-living makes complete sense for young, single, and highly mobile working professionals.
Building Team | Jul 25, 2017
Managing workplace change: The three C's to building trust
Building trust takes time and consistency, and is typically much easier to break than build.
Giants 400 | Jul 12, 2017
Innovation abounds, but will it lead to growth for AEC Giants?
Engineering firms such as Arup, Glumac, and Thornton Tomasetti are leveraging their in-house expertise to develop products and tools for their design teams, clients, and even the competition.
Building Team | Jun 27, 2017
Bruner Foundation announces 2017 Rudy Bruner Award for Urban Excellence gold and silver medalists
The SteelStacks Arts and Cultural Campus in Bethlehem, Pa., receives the gold medal and $50,000.
Urban Planning | Jun 26, 2017
Convenience and community lead the suburban shift
As the demand for well-connected urban locales increases, so too has the cost of property and monthly rent; and as suburbs typically offer a bargain on both, more people are looking for a compromise.
Building Team | Jun 23, 2017
These are the recipients of the AIA's 2017 Small Project Awards
11 projects were awarded in 2017.
Building Team | Jun 22, 2017
Seven lessons learned on commissioning projects
Commissioning is where the rubber meets the road in terms of building design.
Sponsored | Building Team | Jun 20, 2017
Plan ahead when building in the west
Getting a project through plan review can be an unusually long process, anywhere from six months to two years.
