flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Nonresidential construction spending ticks higher in November, down year-over-year

Market Data

Nonresidential construction spending ticks higher in November, down year-over-year

Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016.


By ABC | January 4, 2018

Nonresidential construction spending expanded 0.6 percent in November, totaling $719.2 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Census Bureau. Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016. 

Private nonresidential construction spending is down 3.1 percent year-over-year, while public sector spending has increased 1.7 percent over the same period. Spending in the manufacturing and power categories, two of the larger nonresidential subsectors, fell by a combined $21.7 billion over the past year.

 

  

“The November report represented a stark reversal of preexisting trends,” said ABC Chief Economist Anirban Basu. “For much of the past several years, the pattern in nonresidential construction spending has been one in which a number of private categories expanded briskly, including lodging and office, while a host of public construction categories experienced sluggish  spending. That changed in November, with public construction spending rising and private construction spending shrinking on a year-over-year basis. 

“There are several possible explanations, including growing concerns about overbuilding in a number of large metropolitan areas in the lodging, office and commercial categories,” said Basu. “Financiers may also be less willing to supply financing to a variety of private projects given such concerns. At the same time, the U.S. housing market is the strongest it has been in at least a decade, raising sales prices and expanding assessable residential tax bases. That in turn has supplied additional resources for infrastructure. Over the past year, this has been particularly apparent in the educational and public safety categories.”   

 

Related Stories

Market Data | Aug 30, 2018

Construction in ASEAN region to grow by over 6% annually over next five years

Although there are disparities in the pace of growth in construction output among the ASEAN member states, the region’s construction industry as a whole will grow by 6.1% on an annual average basis in the next five years.

Market Data | Aug 22, 2018

July architecture firm billings remain positive despite growth slowing

Architecture firms located in the South remain especially strong.

Market Data | Aug 15, 2018

National asking rents for office space rise again

The rise in rental rates marks the 21st consecutive quarterly increase.

Market Data | Aug 10, 2018

Construction material prices inch down in July

Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.

Market Data | Aug 9, 2018

Projections reveal nonresidential construction spending to grow

AIA releases latest Consensus Construction Forecast.

Market Data | Aug 7, 2018

New supply's impact illustrated in Yardi Matrix national self storage report for July

The metro with the most units under construction and planned as a percent of existing inventory in mid-July was Nashville, Tenn.

Market Data | Aug 3, 2018

U.S. multifamily rents reach new heights in July

Favorable economic conditions produce a sunny summer for the apartment sector.

Market Data | Aug 2, 2018

Nonresidential construction spending dips in June

“The hope is that June’s construction spending setback is merely a statistical aberration,” said ABC Chief Economist Anirban Basu.

Market Data | Aug 1, 2018

U.S. hotel construction pipeline continues moderate growth year-over-year

The hotel construction pipeline has been growing moderately and incrementally each quarter.

boombox1
boombox2
native1

More In Category


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, 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 $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.



Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021