Nonresidential construction spending slipped 0.7 percent in the final month of 2016, but increased 4.6 percent over the previous year, according to analysis of U.S. Census Bureau data recently released by Associated Builders and Contractors (ABC). Nonresidential spending decreased from $713.1 billion in November to $708.2 billion in December on a seasonally adjusted, annualized basis.
Both November’s estimate ($713.1 billion) and October’s estimate ($707.1 billion) were upwardly revised by less than one-tenth of a percent. Private nonresidential spending remained flat for the month, while public nonresidential spending contracted 1.7 percent.
“Private spending growth, which has led nonresidential spending growth for months, remained flat in December and, as a result, the preexisting story of the industry remains fundamentally unchanged,” said ABC Chief Economist Anirban Basu in a release. “Public construction spending has been soft for many years and the December spending data merely served to extend that part of the tale. Spending in the sewage and waste disposal, transportation, and public safety sectors was particularly weak during the past 12 months. Private spending growth has been on-again, off-again for much of the year, so it is not a surprise that last month’s robust spending report was followed by a flat one.
“On the bright side, the architectural community became much busier in December, signaling an acceleration of commercial activity to come,” said Basu. “In addition, the new administration appears committed to fulfilling its campaign promises, including a pledge to step up infrastructure spending. This has asphalt, pavement and other infrastructure-intensive contractors expressing more confidence in their economic future than they have for many years. As such, the December data provide little insight into the future trajectory of nonresidential construction spending, which is set to improve markedly during the next six to 12 months.”
Related Stories
Market Data | Dec 29, 2020
Multifamily transactions drop sharply in 2020, according to special report from Yardi Matrix
Sales completions at end of Q3 were down over 41 percent from the same period a year ago.
Market Data | Dec 28, 2020
New coronavirus recovery measure will provide some needed relief for contractors coping with project cancellations, falling demand
Measure’s modest amount of funding for infrastructure projects and clarification that PPP loans may not be taxed will help offset some of the challenges facing the construction industry.
Market Data | Dec 28, 2020
Construction employment trails pre-pandemic levels in 35 states despite gains in industry jobs from October to November in 31 states
New York and Vermont record worst February-November losses, Virginia has largest pickup.
Market Data | Dec 16, 2020
Architecture billings lose ground in November
The pace of decline during November accelerated from October, posting an Architecture Billings Index (ABI) score of 46.3 from 47.5.
AEC Tech | Dec 8, 2020
COVID-19 affects the industry’s adoption of ConTech in different ways
A new JLL report assesses which tech options got a pandemic “boost.”
Market Data | Dec 7, 2020
Construction sector adds 27,000 jobs in November
Project cancellations, looming PPP tax bill will undercut future job gains.
Market Data | Dec 3, 2020
Only 30% of metro areas add construction jobs in latest 12 months
Widespread project postponements and cancellations force layoffs.
Market Data | Dec 2, 2020
New Passive House standards offers prescriptive path that reduces costs
Eliminates requirement for a Passive House consultant and attendant modeling.
Market Data | Dec 2, 2020
Nonresidential construction spending remains flat in October
Residential construction expands as many commercial projects languish.
Market Data | Nov 30, 2020
New FEMA study projects implementing I-Codes could save $600 billion by 2060
International Code Council and FLASH celebrate the most comprehensive study conducted around hazard-resilient building codes to-date.