Nonresidential construction surged in November, according to analysis of U.S. Census Bureau data released by Associated Builders and Contractors (ABC). Nonresidential spending expanded to $712.4 billion on a seasonally adjusted, annualized rate in November, representing the highest level of spending in eight years.
October’s figure was upwardly revised by 1 percent (from $699.7 billion to $706.5 billion), while September’s figure was upwardly revised by 0.8 percent (from $701.7 billion to $707.2 billion). A bit more than half of the 16 subsectors experienced spending increases in November.
“Nonresidential construction spending is up approximately 5 percent on a year-over-year basis, and momentum should build further,” says ABC Chief Economist Anirban Basu in a press release. ““If the last few weeks are any indication, the 2017 economy will be associated with tax cuts, more government spending, less financial regulation, faster economic growth, a stronger U.S. dollar, robust stock market performance and greater overall CEO confidence. That should translate into improved construction spending moving forward.”
A stronger U.S. dollar, larger budget deficits, and rising interest rates could shrink U.S. exports and serve to suppress U.S. economic dynamism, but the current nonresidential construction outlook is promising, according to Basu.
Related Stories
Market Data | Jun 19, 2020
7 must reads for the AEC industry today: June 19, 2020
Brown University's first housing building in three decades and demand for family rentals expected to jump.
Market Data | Jun 18, 2020
New data shows construction activity returning to pre-coronavirus levels in many parts of the country
Association survey and data collected by Procore measure impacts of the pandemic, showing signs of a construction recovery, but labor shortages and project cancellations show industry needs federal help.
Market Data | Jun 18, 2020
AIA releases strategies and illustrations for reducing risk of COVID-19 in schools
For the 2020-21 school year, districts are facing the difficult task of determining if K-12 schools will reopen this fall.
Market Data | Jun 18, 2020
6 must reads for the AEC industry today: June 18, 2020
Northbrook's new cannabis dispensary and America's structural steel industry remains a success story.
Market Data | Jun 17, 2020
6 must reads for the AEC industry today: June 17, 2020
Santa Fe becomes the second city in the world to achieve LEED v4.1 and the megacity is dead.
Market Data | Jun 16, 2020
7 must reads for the AEC industry today: June 16, 2020
Tottenham Hotspur Stadium has its own brewery and workers want policy changes before they return to offices.
Market Data | Jun 15, 2020
International Code Council offers guidance on building re-occupancy for reopening economies
Companies and building managers can access free resources at the Code Council’s Coronavirus Response Center.
Market Data | Jun 12, 2020
6 must reads for the AEC industry today: June 12, 2020
How will museums change in the face of COVID-19 and the patriarch of The Boldt Company dies.
Market Data | Jun 11, 2020
5 must reads for the AEC industry today: June 11, 2020
Istanbul opens largest base-isolated hospital in the world and AIA issues tools for reducing risk of COVID-19 transmission in buildings.
Market Data | Jun 10, 2020
6 must reads for the AEC industry today: June 10, 2020
Singapore's newest residential district and CannonDesign unveils COVID Shield.