National nonresidential construction spending decreased 0.4% in January, 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 $1.190 trillion.
Spending was down on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.1%, while public nonresidential construction spending was down 1.0% in January.
“Nonresidential construction spending fell sharply in January, ending a 19-month streak of monthly gains,” said ABC Chief Economist Anirban Basu. “Some of this decrease is due to weather-related factors. That’s especially true in infrastructure categories like highway and street and water supply, both of which exhibited steep declines in spending to start the year but should remain elevated through 2024.
“Construction spending in the manufacturing category, on the other hand, continued to surge in January,” said Basu. “Manufacturing now accounts for nearly $1 of every $5 of nonresidential construction spending.
“Despite January’s disappointing data, nonresidential construction spending is still up more than 17% over the past year,” said Basu. “Given that year-over-year strength and the fact that a majority of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, spending is likely to rebound over the coming months.”
Related Stories
Market Data | May 29, 2020
House-passed bill making needed improvements to paycheck protection program will allow construction firms to save more jobs
Construction official urges senate and White House to quickly pass and sign into law the Paycheck Protection Program Flexibility Act.
Market Data | May 29, 2020
7 must reads for the AEC industry today: May 29, 2020
Using lighting IoT data to inform a safer office reentry strategy and Ghafari joins forces with Eview 360.
Market Data | May 27, 2020
5 must reads for the AEC industry today: May 28, 2020
Biophilic design on the High Line and the office market could be a COVID-19 casualty.
Market Data | May 27, 2020
6 must reads for the AEC industry today: May 27, 2020
AIA's COTE Top Ten Awards and OSHA now requires employers to track COVID-19 cases.
Market Data | May 26, 2020
6 must reads for the AEC industry today: May 26, 2020
Apple's new Austin hotel and is CLT really a green solution?
Market Data | May 21, 2020
7 must reads for the AEC industry today: May 21, 2020
'Creepy' tech invades post-pandemic offices, and meet the new darling of commercial real estate.
Market Data | May 20, 2020
6 must reads for the AEC industry today: May 20, 2020
A wave 'inside' a South Korean building and architecture billings continues historic contraction.
Market Data | May 20, 2020
Architecture billings continue historic contraction
AIA’s Architecture Billings Index (ABI) score of 29.5 for April reflects a decrease in design services provided by U.S. architecture firms.
Market Data | May 19, 2020
5 must reads for the AEC industry today: May 19, 2020
Clemson's new mass timber building and empty hotels as an answer for the affordable housing shortage.
Market Data | May 18, 2020
5 must reads for the AEC industry today: May 18, 2020
California's grid can support all-electric buildings and you'll miss your office when it's gone.
