Nonresidential construction spending fell 2% in January, which is the largest setback to spending since January 2014, according to the March 2 release from the U.S. Census Bureau.
However, at $614.1 billion on a seasonally adjusted, annualized basis, nonresidential construction spending still is 4.8% higher than one year ago. In addition, the spending estimate for December 2014 was revised downward from $627.1 billion to $627 billion and November's figure was revised from $624.8 billion to $621.9 billion.
"Interpreting January construction statistics is always tricky because the seasonal adjustments can never precisely reflect the impact of any given winter or weather system," said Associated Builders and Contractors Chief Economist Anirban Basu. "New England, among other places, was hit heavily by snow in January and this could explain the monthly decline in nonresidential construction spending.
"Additionally, nonresidential construction spending enjoyed positive momentum through the end of 2014 and, until January, had registered spending growth in five of the previous six months," Basu said. "It is also possible that the West Coast port slowdown impacted construction volumes, including by reducing material availability."
Three of 16 nonresidential construction subsectors posted increases in spending in January on a monthly basis.
- Communication construction spending gained 0.7% for the month, but is down 1.5% for the year.
- Highway- and street-related construction spending grew 0.2% in January and is up 8.7% compared to the same time last year.
- Manufacturing-related spending expanded by 4% in January and is up 22.5% for the year.
Spending in 13 nonresidential construction subsectors declined in January.
- Health care-related construction spending fell 2.3% for the month and is down 2.5% for the year.
- Education-related construction spending fell 3.6% for the month and 0.4% on a year-over-year basis.
- Spending in the water supply category dropped 7.5% from December, but is 3.3% higher than at the same time last year.
- Construction spending in the transportation category fell 1.7% on a monthly basis, but has expanded 8.9% on an annual basis.
- Public safety-related construction spending declined 6.7% on a monthly basis and is down 14.5% on a year-over-year basis.
- Commercial construction spending decreased 5.7% in January, but is up 14% on a year-over-year basis.
- Religious spending fell 11.4% for the month and is down 12.4% compared to the same time last year.
- Lodging construction spending is down 4.4% on a monthly basis, but is up 18.2% on a year-over-year basis.
- Sewage and waste disposal-related construction spending shed 7.5% for the month, but has grown 16% on a 12-month basis.
- Power-related construction spending fell 1.1% for the month and is 13.2% lower than at the same time one year ago.
- Conservation and development-related construction spending fell 5.1% for the month but is up 25.6% on a yearly basis.
- Office-related construction spending declined 1.7% in January but is up 13.7% from the same time one year ago.
- Amusement and recreation-related construction spending fell 3.2% on a monthly basis but is up 19.3% from the same time last year.
- Sewage and waste disposal-related construction spending fell 2% for the month, but has grown 10.5% on a 12-month basis.
Related Stories
Building Team | Jul 13, 2022
Austin’s newest entertainment and hospitality complex has been made from repurposed shipping containers
A new entertainment and hospitality complex in Austin, The Pitch, has been made out of repurposed shipping containers.
Codes and Standards | Jul 12, 2022
USGBC sets out principles for LEED’s future
The U.S. Green Building Council recently published a report containing principles outlining how LEED will evolve.
Building Team | Jul 12, 2022
10 resource reduction measures for more efficient and sustainable biopharma facilities
Resource reduction measures are solutions that can lead to lifecycle energy and cost savings for a favorable return on investment while simultaneously improving resiliency and promoting health and wellness in your facility.
Office Buildings | Jul 12, 2022
Miami office tower nears completion, topping off at 55 stories
In Miami, construction of OKO Group and Cain International’s 830 Brickell office tower is nearing completion.
University Buildings | Jul 11, 2022
Student life design impacts campus wellness
As interior designers, we have the opportunity and responsibility to help students achieve deeper levels of engagement in their learning, social involvement, and personal growth on college campuses.
Museums | Jul 11, 2022
Denmark opens a museum that tells the stories of refugees worldwide
Located on the site of Denmark’s largest World War II refugee camp, the new Refugee Museum of Denmark, FLUGT, tells the stories of refugees from the camp as well as refugees worldwide.
Codes and Standards | Jul 8, 2022
Inefficient supply chains, outdated project delivery systems hamper construction investment
Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.
Airports | Jul 8, 2022
Phoenix Sky Harbor Airport’s new terminal prioritizes passenger experience and sustainability
McCarthy Building Companies recently completed construction of the final concourse in Terminal 4 at Phoenix Sky Harbor International Airport.
Building Team | Jul 7, 2022
Report explores improving architect/contractor relationship
A new study by the American Institute of Architects and the Associated General Contractors of America focuses on improving the relationship between architects and contractors.
Airports | Jul 7, 2022
Love at first flight: The power of first impressions in airports
As architects, how we design a terminal and choreograph the passenger experience can stir up strong feelings.
