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
| Nov 21, 2014
Nonresidential Construction Index rises in fourth quarter
There are a number of reasons for optimism among respondents of FMI's quarterly Nonresidential Construction Index survey, including healthier backlogs and low inflation.
| 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.
| Nov 20, 2014
Lean Led Design: How Building Teams can cut costs, reduce waste in healthcare construction projects
Healthcare organizations are under extreme pressure to reduce costs, writes CBRE Healthcare's Lora Schwartz. Tools like Lean Led Design are helping them cope.
| Nov 19, 2014
The evolution of airport design and construction [infographic]
Safety, consumer demand, and the new economics of flight are three of the major factors shaping how airlines and airport officials are approaching the need for upgrades and renovations, writes Skanska USA's MacAdam Glinn.
| Nov 19, 2014
Construction unemployment hits eight-year low, some states struggle to find qualified labor
The construction industry, whose workforce was decimated during the last recession, is slowly getting back on its feet. However, in certain markets—especially those where oil drilling and production have been prospering—construction workers can still be scarce.
Sponsored | | Nov 19, 2014
3 technology trends on the horizon
As technology continues to evolve exponentially, construction firms have ongoing opportunities to enhance the quality, speed, and efficiency of building projects and processes. SPONSORED CONTENT
Sponsored | | Nov 19, 2014
Long-life coatings vs. long-life screws
Are you concerned with the long-life protection of your metal building project? SPONSORED CONTENT
Sponsored | | Nov 19, 2014
Fire resistive, blast-resistant glazing: Where security, safety, and transparency converge
Security, safety and transparency don’t have to be mutually exclusive thanks to new glazing technology designed to support blast and fire-resistant secure buildings. SPONSORED CONTENT
| Nov 19, 2014
Must see: Arup, Damian Rogers propose urban surf park in Melbourne
The surfing pool would offer 98-foot-wide waves that would run the length of the 500-foot-long enclave.
| Nov 18, 2014
Architecture Billings Index dips in October, still shows positive outlook design services
Headed by the continued strength in the multifamily residential market and the emerging growth for institutional projects, demand for design services continues to be healthy, as exhibited in the latest Architecture Billings Index.