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
Sponsored | | Nov 26, 2014
Virtual reality in 3D models, iPhone thermal imaging: Inside one very cool tech toybox
A little over a year ago, I embarked on a search to find individuals in the AEC space who were putting new hardware to work in the field.
| Nov 25, 2014
Behnisch Architekten unveils design for energy-positive building in Boston
The multi-use building for Artists For Humanity that is slated to be the largest energy positive commercial building in New England.
| Nov 25, 2014
Study: 85% of employees dissatisfied with their office environment
A vast majority of office workers feel open floor plans cause multiple distractions and that more private spaces are needed in today's offices, according to a new study by Steelcase and research firm IPSOS.
| Nov 25, 2014
Emerging design and operation strategies for the ambulatory team in transition
As healthcare systems shift their care models to be more responsive to patient-centered care, ambulatory care teams need to be positioned to operate efficiently in their everyday work environments, write CannonDesign Health Practice leaders Tonia Burnette and Mike Pukszta.
| Nov 24, 2014
Midsize construction firms see a brighter business horizon
Uncertainty about government spending clouds an otherwise positive economic outlook among 59 middle market construction firms polled recently by GE Capital.
| Nov 24, 2014
Adrian Smith + Gordon Gill-designed crystalline tower breaks ground in southwestern China
Fitted with an LED façade, the 468-meter Greenland Tower Chengdu will act as a light sculpture for the city of Chengdu.
| Nov 21, 2014
Rental apartment construction soars to 27-year high: WSJ report
The multifamily sector is now outpacing the peak construction rate in the previous housing cycle, in 2006, according to the WSJ.
| Nov 21, 2014
Nonresidential Construction Index rises in fourth quarter
There are a number of reasons for optimism among respondents of FMI's quarterly Nonresidential Construction Index survey, including healthier backlogs and low inflation.
| Nov 21, 2014
NCARB: Number of architects in U.S. grows 1.6% in 2014, surpasses 107,500
The architecture profession continues to grow along with a gradually recovering economy, based on the results of the 2014 Survey of Architectural Registration Boards, conducted by the National Council of Architectural Registration Boards.
| Nov 20, 2014
Lean Led Design: How Building Teams can cut costs, reduce waste in healthcare construction projects
Healthcare organizations are under extreme pressure to reduce costs, writes CBRE Healthcare's Lora Schwartz. Tools like Lean Led Design are helping them cope.
