The latest Construction Economic Update from the Associated Builders and Contractors (ABC) reported a 3.4% decline in nonresidential fixed investment during the first quarter of 2015. According to a recent gross domestic product report by the Bureau of Economic Analysis, the GDP rose by 0.2% during the same time.
This is the first time that nonresidential fixed investment declined since the first quarter of 2011, ABC reported.
Nonresidential fixed investment had been rising by more than 4% on an annualized basis during five of the previous six quarters.
Despite extreme weather across the country, nonresidential fixed investment expanded while energy prices were higher, causing the energy exploration, development, and distribution sectors to grow.
“Lower energy prices had an intense impact during the first quarter of 2015 and consumer spending was not enough to meaningfully offset the plummeting nonresidential fixed investment,” said ABC Chief Economic Anirban Basu. “Investment in equipment inched up just 0.1% and, while investment in intellectual property products expanded 7.8%, the third component, investment in structures, fell 23.1% during this year’s first quarter.”
Basu added that contractors and others in the building industry should remain positive in the continued expansion of the economy. Consumer spending is expected to pick up as the year goes on, which will help things return to normal levels during the second and third quarters of the year.
The following is first quarter performance of key segments:
- Personal consumption expenditures added 1.31% to GDP after contributing 2.98% in the fourth quarter.
- Spending on goods grew only 0.2% after a 4.8% increase in the fourth quarter.
- Real final sales of domestically products output – minus changes in private inventories – decreased 0.5% for the first quarter, after a 2.3% increase in the fourth quarter.
- Federal government spending expanded 0.3% in the first quarter following a 7.3% decrease in the prior quarter.
- Nondefense spending expanded 1.9% after increasing 1.5% in the fourth quarter of 2014.
- State and local government spending fell 1.5% during the first three months of the year after rising by 1.6% during the fourth quarter.
Related Stories
| Aug 14, 2013
Green Building Report [2013 Giants 300 Report]
Building Design+Construction's rankings of the nation's largest green design and construction firms.
| Aug 14, 2013
Military Construction Report [2013 Giants 300 Report]
Building Design+Construction's rankings of the nation's largest military sector design and construction firms, as reported in the 2013 Giants 300 Report.
| Aug 13, 2013
DPR's Phoenix office, designed by SmithGroupJJR, affirmed as world's largest ILFI-certified net-zero facility
The new Phoenix Regional Office of DPR Construction, designed by SmithGroupJJR, has been officially certified as a Net Zero Energy Building by the International Living Future Institute (ILFI). It’s the largest building in the world to achieve Net Zero Energy Building Certification through the Institute to date.
| Aug 13, 2013
USGBC joins forces with Green Sports Alliance to promote sustainable venues
The U.S. Green Building Council (USGBC) has announced a collaboration with the Green Sports Alliance, a prominent nonprofit organization supporting the development and promotion of green building initiatives in professional and collegiate sports.
| Aug 8, 2013
Energy research animates science sector [2013 Giants 300 Report]
After an era of biology-oriented spending—largely driven by Big Pharma and government concerns about bioterrorism—climate change is reshaping priorities in science and technology construction.
| Aug 8, 2013
Top Science and Technology Sector Engineering Firms [2013 Giants 300 Report]
Affiliated Engineers, Middough, URS top Building Design+Construction's 2013 ranking of the largest science and technology sector engineering and engineering/architecture firms in the U.S.
| Aug 8, 2013
Top Science and Technology Sector Architecture Firms [2013 Giants 300 Report]
HDR, Perkins+Will, HOK top Building Design+Construction's 2013 ranking of the largest science and technology sector architecture and architecture/engineering firms in the U.S.
| Aug 8, 2013
Top Science and Technology Sector Construction Firms [2013 Giants 300 Report]
Skanska, DPR, Suffolk top Building Design+Construction's 2013 ranking of the largest science and technology sector contractors and construction management firms in the U.S.
| Aug 8, 2013
Level of Development: Will a new standard bring clarity to BIM model detail?
The newly released LOD Specification document allows Building Teams to understand exactly what’s in the BIM model they’re being handed.
| Aug 8, 2013
Vertegy spins off to form independent green consultancy
St. Louis-based Vertegy has announced the formation of Vertegy, LLC, transitioning into an independent company separate from the Alberici Enterprise. The new company was officially unveiled Aug. 1, 2013