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
| May 16, 2014
Toyo Ito leads petition to scrap Zaha Hadid's 2020 Olympic Stadium project
Ito and other Japanese architects cite excessive costs, massive size, and the project's potentially negative impact on surrounding public spaces as reasons for nixing Hadid's plan.
| May 15, 2014
Biking to work up by 60 percent, according to Census Bureau report
Many U.S. cities are seeing an increase in bicycle commuters, according to new a U.S. Census Bureau report. While bicyclists still account for just 0.6% of all commuters, some of the nation's largest cities have more than doubled their rates since 2000.
| May 14, 2014
Construction growth looking up: Gilbane Spring 2014 Economic Report
Construction spending for 2014 should finish 6.6% higher than in 2013, with nonresidential work contributing substantially.
| May 13, 2014
First look: Nadel's $1.5 billion Dalian, China, Sports Center
In addition to five major sports venues, the Dalian Sports Center includes a 30-story, 440-room, 5-star Kempinski full-service hotel and conference center and a 40,500-square-meter athletes’ training facility and office building.
| May 13, 2014
J. Vinton Schafer & Sons initiates leadership transition
J. Vinton Schafer & Sons, Inc., a Quandel Enterprises Company, announced today that Ronald E. Knowles, P.E., who has served as president of the firm for 20 years, has transitioned to chairman and CEO, and the company has appointed Warren L. Hamilton as its new president.
| May 13, 2014
Kevin MacClary named VP of Foulger-Pratt Contracting
Foulger-Pratt Contracting, Rockville, Md., has promoted Kevin MacClary to VP.
| May 13, 2014
China Construction America acquires Plaza Construction
China State Construction Engineering Corp., China’s largest construction company, has made a significant investment in a U.S. construction firm closing the deal for an undisclosed amount to acquire Plaza Construction.
| May 13, 2014
Karl Kreutziger named President of Driver SPG
C.W. Driver– a premier builder serving California since 1919 – has promoted Karl Kreutziger to president of Driver SPG, the company’s Anaheim, Calif.-based construction affiliate.
| May 13, 2014
19 industry groups team to promote resilient planning and building materials
The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.
| May 13, 2014
Libeskind wins competition to design Canadian National Holocaust Monument
A design team featuring Daniel Libeskind and Gail Dexter-Lord has won a competition with its design for the Canadian National Holocaust Monument in Toronto. The monument is set to open in the autumn of 2015.
