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
Building Team | Jan 3, 2017
How does your firm’s hit rate stack up to the AEC competition?
If your firm is not converting at least a third of project proposals when competing for new work, it may be time to reassess your marketing tactics and processes.
Building Team | Dec 30, 2016
An open letter to the AEC C-suite
Women AEC professionals need you to take action.
Building Team | Dec 14, 2016
Hackathons set the stage at events for women in AEC and BD+C Under-40s
Popular among engineers, hackathons are forums that encourage “constructive collision” by bringing people into a room, letting them self-organize around common interests and goals, and having them work together in groups over two or three consecutive days to devise workable inventions that fill identifiable needs.
Building Team | Dec 14, 2016
Will Trump-led America be a boon or bust for U.S. AEC firms?
Regardless of which side of the aisle you stand on, election night was a jaw-dropping moment.
Building Team | Dec 8, 2016
The NYC Public Design Commission recognizes 12 projects with its 2016 Excellence in Design Award
2016 marked the 34th year the Public Design Commission has handed out its Excellence in Design Awards.
Building Team | Dec 2, 2016
Alexandria Real Estate Equities becomes first real estate investment trust to be named a First-in-Class Fitwel Champion
Fitwel building certification was developed to foster positive impacts on building occupant health and productivity through improvements to workplace design and policies.
Building Team | Nov 15, 2016
Major architecture firms are flocking to Dubai’s Design District
Three more major firms are making a permanent home in Dubai.
Architects | Nov 11, 2016
Six finalists selected for London’s Illuminated River competition
The competition is searching for the best design for lighting the bridges of central London.
Building Team | Nov 7, 2016
Taking cues from nature: How biomimicry can drive ROI for hoteliers
Biomimicry takes inspiration from nature’s form, processes, and ecosystems to solve human problems. This design method, which incorporates lessons learned from nature, can constantly morph in response to new challenges in our environments, writes Gensler's Lorraine Francis.
Building Team | Nov 2, 2016
AIA 'I Look Up Film Challenge' People's Choice Award revealed
Top films address accessibility for the disabled, 18th century urban planning, and a recycling facility that does more than repurpose material.
