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 7, 2014
Ranked: Top state government sector AEC firms [2014 Giants 300 Report]
PCL Construction, Stantec, and AECOM head BD+C's rankings of the nation's largest state government design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 7, 2014
Ranked: Top military sector AEC firms [2014 Giants 300 Report]
Balfour Beatty, Fluor, and HDR top BD+C's rankings of the nation's largest military sector design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 5, 2014
First Look: Zaha Hadid's Grace on Coronation towers in Australia
Zaha Hadid's latest project in Australia is a complex of three, tapered residential high-rises that have expansive grounds to provide the surrounding community unobstructed views and access to the town's waterfront.
| Sep 4, 2014
Ranked: Top courthouse sector AEC firms [2014 Giants 300 Report]
Fentress Architects, Tutor Perini, and AECOM top BD+C's rankings of design and construction firms with the most revenue from courthouse facilities, as reported in the 2014 Giants 300 Report.
| Sep 4, 2014
Strong industry growth could be slowed by skilled labor shortage, says Gilbane report
While construction spending for 2014 will finish the year 5.5% higher than 2013 and the unemployment rate in construction is down to 7.5%, the industry has been losing workers for more than five years, according to a new Gilbane report.
| Sep 3, 2014
Ranked: Top local government sector AEC firms [2014 Giants 300 Report]
STV, HOK, and Turner top BD+C's rankings of the nation's largest local government design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 3, 2014
WSP to acquire Parsons Brinckerhoff in $1.35 billion deal
The deal, which has been approved by the boards of WSP and Balfour Beatty, has an enterprise value of $1.243 billion, plus another $110 million in cash retained by PB.
| Sep 3, 2014
New designation launched to streamline LEED review process
The LEED Proven Provider designation is designed to minimize the need for additional work during the project review process.
| Sep 2, 2014
Melbourne's tallest residential tower will have 'optically transformative façade'
Plans for Melbourne's tallest residential tower have been released by Elenberg Fraser Architects. Using an optically transformative façade and botanical aesthetic, the project seeks to change the landscape of Australia's Victoria state.
| Sep 1, 2014
Ranked: Top federal government sector AEC firms [2014 Giants 300 Report]
Clark Group, Fluor, and HOK top BD+C's rankings of the nation's largest federal government design and construction firms, as reported in the 2014 Giants 300 Report.
