Nonresidential construction spending fell for a second consecutive month in August, according to analysis of U.S. Census Bureau released today by Associated Builders and Contractors (ABC). Nonresidential spending totaled $686.6 billion on a seasonally adjusted, annualized basis for the month, 1.1% lower than July’s total of $694.1 billion (revised down from $701 billion) and 1.3% below August 2015’s figure.
Private nonresidential construction spending fell just 0.4% for the month, while its public sector counterpart shrank 2%. Four of the five largest nonresidential subsectors—power, highway and street, commercial and manufacturing—combined to fall 2.2% on a monthly basis.
“While previous weak spending reports can almost completely be explained by diminished public construction spending, today’s report also revealed emerging weakness in private spending,” says ABC Chief Economist Anirban Basu.
However, spending has increased in some areas. Office-related construction increased 2% for the month and 24 percent on a year-over-year basis. Meanwhile, lodging-related construction spending increased 1.2% for the month and almost 16% year-over-year.
Other areas have underperformed. “Given the passage of a federal highway bill last year, one might have expected spending growth in the highway/street and transportation categories,” Basu says. “Those expectations have been unmet thus far. Transportation-related construction spending dipped by more than 6 percent in August and by more than 11 percent on a year-over-year basis. Highway and street spending is down by more than 8 percent on a year-ago basis, and was down nearly 3 percent for the month.”
Related Stories
Industry Research | Mar 17, 2022
Construction input prices rise 2.6% in February, says ABC
Construction input prices increased 2.6% in February compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today
Museums | Mar 16, 2022
Unpacking the secrets to good museum storage
Museum leaders should focus as much design attention on the archives as the galleries themselves, according to a new white paper by Erin Flynn and Bruce Davis, architects and museum experts with the firm Cooper Robertson.
Codes and Standards | Mar 10, 2022
HOK offers guidance for reducing operational and embodied carbon in labs
Global design firm HOK has released research providing lab owners and developers guidance for reducing operational and embodied carbon to meet net zero goals.
Industry Research | Mar 9, 2022
Survey reveals five ways COVID-19 changed Americans’ impressions of public restrooms and facilities
Upon entering the third year of the pandemic, Americans are not only more sensitive to germs in public restrooms, they now hold higher standards for the cleanliness, condition and technology used in these shared spaces, according to the annual Healthy Handwashing Survey™ from Bradley Corporation conducted in January.
Codes and Standards | Mar 7, 2022
Late payments in the construction industry rose in 2021
Last year was a tough one for contractors when it comes to getting paid on time.
Multifamily Housing | Mar 4, 2022
221,000 renters identify what they want in multifamily housing, post-Covid-19
Fresh data from the 2022 NMHC/Grace Hill Renter Preferences Survey shows how remote work is impacting renters' wants and needs in apartment developments.
Codes and Standards | Mar 4, 2022
Construction industry faces a 650,000 worker shortfall in 2022
The U.S. construction industry must hire an additional 650,000 workers in 2022 to meet the expected demand for labor, according to a model developed by Associated Builders and Contractors.
Industry Research | Mar 3, 2022
AIA awards research grants to advance climate action
The American Institute of Architects (AIA) Upjohn Research Initiative is providing up to $30,000 to five research projects that will advance sustainability in architecture.
Industry Research | Mar 2, 2022
31 percent of telehealth visits result in a physical office visit
With little choice but to adopt virtual care options due to pandemic restrictions and interactions, telehealth adoption soared as patients sought convenience and more efficient care options.
Codes and Standards | Mar 1, 2022
Engineering Business Sentiment study finds optimism despite growing economic concerns
The ACEC Research Institute found widespread optimism among engineering firm executives in its second quarterly Engineering Business Sentiment study.