National nonresidential construction spending increased 0.8% in July, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $847.6 billion for the month.
Spending was up on a monthly basis in 13 of the 16 nonresidential subcategories. Private nonresidential spending was up 0.4%, while public nonresidential construction spending was up 1.5% in July.
“The nonresidential sector continues to grapple with rising borrowing costs, elevated materials and labor costs and pervasive economic pessimism,” said ABC Chief Economist Anirban Basu. “Despite a modest increase in July, nonresidential construction spending remains below its pre-pandemic level. There is, however, at least one bright spot for the industry: publicly financed construction. State and local governments are flush with cash, and considerable funding is slated for various forms of infrastructure. In July, spending in the highway and street category increased 4.4%, while spending in the public safety category rose 2.3%.
“For privately financed construction, circumstances could get worse before they get better,” said Basu. “The Federal Reserve recently recommitted to further tightening monetary policy. Market sentiment quickly turned negative. Rather than disappear, supply chain challenges are proliferating in much of the world, including in Europe and China, and the risk of recession is elevated. This is simply not a set of circumstances conducive to rapid nonresidential construction spending growth, and according to the most recent Construction Confidence Index, just 31% of contractors expect their profit margins to grow over the next six months.”
Related Stories
| Aug 11, 2010
Turner edges out Perkins+Will for the top spot on BD+C's Top 200 Building Team LEED APs ranking
With 1,006 LEED Accredited Professionals on staff, Turner Construction took the top spot on Building Design+Construction’s 2009 ranking of AEC firms with the most LEED APs, published as part of the Giants 300 report. Turner added more than 580 LEED APs during the past year to surpass Perkins+Will, which held the top spot four years running.
| Aug 11, 2010
JE Dunn, Balfour Beatty among country's biggest institutional building contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Institutional Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
AIANY partners with New York's building department to launch design competition for safer, more appealing sidewalk shed
The New York City Department of Buildings (DOB) and the New York Chapter of the American Institute of Architects (AIANY) today announced the launch of the urbanSHED International Design Competition with support from the Alliance for Downtown New York, ABNY Foundation, Illuminating Engineering Society New York City Section (IESNYC), and the New York Building Congress.
| Aug 11, 2010
Construction employment declines in 48 states in August compared to last year
Construction employment saw significant declines in all but two states this August compared to last year according to an analysis of new state-by-state employment figures released today by the federal government. The analysis, conducted by the Associated General Contractors of America, however did show that the number of states gaining construction jobs increased slightly in August compared to July 2009.
| Aug 11, 2010
Stimulus funding helps get NOAA project off the ground
The award-winning design for the National Oceanic and Atmospheric Administration’s (NOAA) new Southwest Fisheries Science Center (SWFSC) replacement laboratory saw its first sign of movement on Sept 15 with a groundbreaking ceremony held in La Jolla, Calif. The $102 million project is funded primarily by the American Recovery and Reinvestment Act (ARRA), resulting in a rapidly advanced construction plan for the facility.
| Aug 11, 2010
BIM adoption rate exceeds 80% among nation’s largest AEC firms
The nation’s largest architecture, engineering, and construction companies are on the BIM bandwagon in a big way, according to Building Design+Construction’s premier Top 170 BIM Adopters ranking, published as part of the 2009 Giants 300 survey. Of the 320 AEC firms that participated in Giants survey, 83% report having at least one BIM seat license in house, and nearly a quarter (23%) have 100-plus seats.
