Today's Census Bureau release regarding nonresidential construction spending did not just offer good news about April, it also supplied upwardly revised spending data for both February and March.
Nonresidential spending expanded 3.2% on a monthly basis in April, and spending totaled $646.7 billion on a seasonally adjusted, annualized basis, according to the government's initial estimate. Nonresidential construction is up by a solid 8.8% over the past year, consistent with ABC's forecast of high single-digit growth.
The Census Bureau also revised March's nonresidential spending figure from $611.8 billion to $626.7 billion, and February's figure from $613.1 billion to $618.4 billion. Initial estimates suggested that nonresidential construction was sagging during the early months of the year; however, the new data indicate spending has expanded during each of the previous three months.
"There is a considerable amount of financial capital available to move construction projects forward and low interest rates certainly help. While the availability of substantial financial capital may eventually produce over-built private construction markets, for now the expectation is that progress will continue." —Anirban Basu, ABC Chief Economist
"The upbeat assessment of nonresidential construction in April has been rendered more meaningful by the upward revisions for prior months," said ABC Chief Economist Anirban Basu. "The presumption had been that nonresidential spending construction data would improve as we approached the summer, and the outlook ahead remains solid.
"There is a considerable amount of financial capital available to move construction projects forward and low interest rates certainly help," added Basu. "While the availability of substantial financial capital may eventually produce over-built private construction markets, for now the expectation is that progress will continue."
All but one nonresidential construction sector experienced spending increases in April:
• Manufacturing-related construction spending expanded 2.6% in April and is up a whopping 52.9% on a yearly basis.
• Office-related construction spending expanded 3.7% in April and is up 8.8% compared to the same time one year ago.
• Construction spending in the transportation category grew 1.6% on a monthly basis and has expanded 11.6% on an annual basis.
• Lodging-related construction spending was up 5.5% on a monthly basis and 17.6% on a year-over-year basis.
• Health care-related construction spending expanded 2.1% for the month and is up 2.6% compared to the same time last year.
• Spending in the water supply category expanded 0.7% from March and is up 0.8% on an annual basis.
• Public safety-related construction spending gained 2.3% on a monthly basis, but is down 5.6% on a year-over-year basis.
• Commercial construction spending expanded 2.7% in April and is up 17.5% on a year-over-year basis.
• Religious spending gained 3.3% for the month, but is down 7.8% compared to the same time last year.
• Sewage and waste disposal-related construction spending gained 0.5% for the month and has grown 14.9% on a 12-month basis.
• Power-related construction spending grew 2.5% for the month, but is 11.3% lower than the same time one year ago.
• Highway and street-related construction spending expanded 8.5% in April and is up 4.8% compared to the same time last year.<
• Conservation and development-related construction spending grew 3.7% for the month and is up 17.2% on a yearly basis.
• Amusement and recreation-related construction spending improved 2.5% on a monthly basis and is up 23.3% from the same time last year.
• Education-related construction spending gained 3.2% for the month and is up 0.4% on a year-over-year basis.
Spending declined in only one nonresidential construction subsector in April:
• Communication-related construction spending fell 5.9% for the month and is down 5.5% for the year.
To view the previous spending report, click here.
Related Stories
| Sep 29, 2014
Snøhetta releases final plan for terraced central library in Calgary
The competition-winning New Central Library is now in the final design stages, after two years of community engagement on the part of design firms Snøhetta and DIALOG.
| Sep 25, 2014
Jean Nouvel unveils plans for National Art Museum of China
Of the design, Nouvel describes it as inspired by the simplicity of “a single brush stroke.”
Sponsored | | Sep 25, 2014
Your business doesn’t always need to change
By now, the idea that organizations must adapt to maintain both relevance and market share is so ingrained that it’s been reduced to pithy sayings. But is constant adaptation always the best policy? SPONSORED CONTENT
| Sep 24, 2014
Must see: Semi-submerged hotel planned for Qatar's man-made island
Plans for a new hotel in the Persian Gulf are taking Dubai’s Palm Islands concept to a whole new level—underwater, that is.
| Sep 24, 2014
5 business lessons from a 43-year Star veteran
Mary Ed Cain was supposed to be born a boy. That was the first time she surprised everyone. The second time came on a daily basis during her 43-year career at Star Building Systems. SPONSORED CONTENT
| Sep 24, 2014
Architecture billings see continued strength, led by institutional sector
On the heels of recording its strongest pace of growth since 2007, there continues to be an increasing level of demand for design services signaled in the latest Architecture Billings Index.
| Sep 24, 2014
Frank Gehry's first building in Latin America will host grand opening on Oct. 2
Gehry's design for the Biomuseo, or Museum of Biodiversity, draws inspiration from the site's natural and cultural surroundings, including local Panamaian tin roofs.
| Sep 23, 2014
Third phase of New York’s High Line redevelopment opens
The $35 million Phase 3, known as High Line at the Rail Yards, broke ground September 20, 2012, and officially opened to the public on September 21.
| Sep 23, 2014
Designing with Water: Report analyzes ways coastal cities can cope with flooding
The report contains 12 case studies of cities around the world that have applied advanced flood management techniques.
| Sep 22, 2014
Sound selections: 12 great choices for ceilings and acoustical walls
From metal mesh panels to concealed-suspension ceilings, here's our roundup of the latest acoustical ceiling and wall products.