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
| Aug 21, 2014
Strategies for providing great customer service
Customers are inherently inefficient and inconvenient to do business with, writes Customer Service Consultant Micah Solomon, in a recent Forbes post. That’s why he believes great customer service depends on understanding this. SPONSORED CONTENT
| Aug 21, 2014
Must See: Detroit's Beaux-Arts parking garage
An opulent Renaissance Revival building in downtown Detroit is being used as a parking garage.
| Aug 20, 2014
Construction backlog indicator reaches all-time high in second quarter
Associated Builders and Contractors (ABC) Construction Backlog Indicator (CBI) reached an all-time high in the second quarter of 2014. CBI improved 5.4 percent and currently stands at 8.5.
| Aug 19, 2014
Goettsch Partners unveils design for mega mixed-use development in Shenzhen [slideshow]
The overall design concept is of a complex of textured buildings that would differentiate from the surrounding blue-glass buildings of Shenzhen.
| Aug 18, 2014
Perkins+Will expands planning practice with strategic focus on underserved U.S. communities
The broadened focus is resulting in comprehensive, long-term plans that will guide new growth in places like Buffalo, N.Y., Kingston, R.I., and Brooklyn, N.Y.
| Aug 18, 2014
SPARK’s newly unveiled mixed-use development references China's flowing hillscape
Architecture firm SPARK recently finished a design for a new development in Shenzhen. The 770,700 square-foot mixed-use structure's design mimics the hilly landscape of the site's locale.
| Aug 18, 2014
Seaside luxury: Arquitectonica, Melo Group introduce Aria on the Bay condo tower in Miami
Melo Group has launched sales for Aria on the Bay, its new 647-unit luxury condominium in Miami. The bayfront condo will overlook Margaret Pace Park, Biscayne Bay and the Miami Beach skyline.
| Aug 15, 2014
First look: RMJM’s 'jumping fish' tower design for the Chinese Riviera
The tower's fish-jumping gesture is meant to symbolize the prosperity and rapid transformation of Zhuhai, China.
| Aug 15, 2014
Periscope structure gives public toilet an unobstructed sea view
Polish architect Adam Wiercinski designs a public toilet with a periscope mechanism that gives visitors unobstructed views of the sea.
| Aug 14, 2014
Life cycle cost analysis using energy modeling
A life cycle cost analysis helps a school district decide which HVAC system to use in $198 million worth of future building projects.