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
| Dec 12, 2014
Dunkin’ Donuts launches certification for green restaurant buildings
The company aims to build 100 new DD Green-certified restaurants by the end of 2016.
| Dec 10, 2014
International Olympic Committee releases first images of new HQ in Switzerland
Designed by 3XN, the new headquarters is located within a park on the shores of Lake Geneva and adjacent to historic Château de Vidy, which has been the iconic home of the IOC.
| Dec 9, 2014
ABC economist predicts continued construction industry growth in 2015
In his latest report, ABC's Chief Economist Anirban Basu forecasts nonresidential construction spending to expand by roughly 7.5% next year, led by the power, lodging, office, and manufacturing sectors.
| Dec 8, 2014
Moshe Safdie wants to reinvent airports with Jewel Changi Airport addition
A new addition to Singapore's Changi Airport, designed by Moshe Safdie, will feature a waterfall and extensive indoor gardens.
| Dec 5, 2014
Plotting on the go: 3D-printed mechanical compass can print CAD drawings with high precision
Design student Ken Nakagaki has adapted a device to work with CAD software to replicate digital files on paper.
High-rise Construction | Dec 1, 2014
ThyssenKrupp develops world’s first rope-free elevator system
ThyssenKrupp's latest offering, named MULTI, will allow several cabins in the same shaft to move vertically and horizontally.
| Nov 26, 2014
USITT Selects Bahrain National Theatre for Honor Award
The Bahrain National Theatre will be recognized with an Honor Award by the United States Institute for Theatre Technology (USITT) in 2015.
| Nov 25, 2014
Study: 85% of employees dissatisfied with their office environment
A vast majority of office workers feel open floor plans cause multiple distractions and that more private spaces are needed in today's offices, according to a new study by Steelcase and research firm IPSOS.
| Nov 21, 2014
Rental apartment construction soars to 27-year high: WSJ report
The multifamily sector is now outpacing the peak construction rate in the previous housing cycle, in 2006, according to the WSJ.
| Nov 21, 2014
NCARB: Number of architects in U.S. grows 1.6% in 2014, surpasses 107,500
The architecture profession continues to grow along with a gradually recovering economy, based on the results of the 2014 Survey of Architectural Registration Boards, conducted by the National Council of Architectural Registration Boards.
