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
| Feb 25, 2013
HOK sustainability expert Mary Ann Lazarus tapped by AIA for strategy consulting position
Mary Ann Lazarus, FAIA, LEED® AP BD+C, has accepted a two-year consulting position with the American Institute of Architects in Washington, DC. Her new position, which begins March 1, will focus on increasing the AIA's impact on sustainability across the profession. The St. Louis-based architect will continue consulting at HOK.
| Feb 25, 2013
First look: Google's new HQ is engineered for creative collisions
The new California "Googleplex" will be engineered to make sure no Google employee will be more than a 2.5 minute walk away from any other.
| Feb 25, 2013
AISC seeks proposals for development of BIM best practices guide
The American Institute of Steel Construction seeks assistance from BIM users in identifying and documenting best practices to facilitate the long-term standardization of BIM in structural steel construction.
| Feb 22, 2013
Westlake Reed Leskosky will renovate training center for Cleveland Browns
Local firm Westlake Reed Leskosky has been chosen to design renovations to the Cleveland Browns' Training and Administrative Complex in Berea, Ohio.
| Feb 22, 2013
Starbucks pilot program rolls out small, modular stores
Coffee giant Starbucks is rolling out mini-stores with maximum local flavor, as part of an international pilot program.
| Feb 22, 2013
Defense department report: Green design saves taxpayers money
An independent report on energy efficiency and sustainability standards used by the Pentagon for military construction affirms the value of LEED-certified high performing buildings to America’s military and U.S. taxpayers.
| Feb 22, 2013
Detroit project would bring 'fairytale forest' to riverfront
A proposal by atelierWHY to create a heavily wooded park on the downtown riverfront has taken first place in the juried Detroit By Design competition.
| Feb 22, 2013
Zaha Hadid to help plan new London-area airport hub
The Mayor of London has appointed Zaha Hadid Architects to help create a major new airport in southeastern England.
| Feb 21, 2013
AIA College of Fellows awards 2013 Latrobe Prize for 'The City of 7 Billion'
The American Institute of Architects (AIA) College of Fellows has awarded the 2013 Latrobe Prize of $100,000 for the proposal, “The City of 7 Billion.”
| Feb 21, 2013
BD+C's 2011 White Paper: Zero and Net-Zero Energy Buildings + Homes
We submit our eighth White Paper on Sustainability in the hope that it will inspire architects, engineers, contractors, building owners, developers, building product manufacturers, environmentalists, policymakers, government officials, corporate executives, officeholders, and the public to foster the development of net-zero energy buildings and homes.
