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
| Aug 11, 2022
Report examines supposed conflict between good design and effective cost management
A report by the American Institute of Architects and the Associated General Contractors of America takes a look at the supposed conflict between good design and effective cost management, and why it causes friction between architects and contractors.
Energy Efficiency | Aug 11, 2022
Commercial Energy Efficiency: Finally “In-the-Money!”
By now, many business leaders are out in front of policymakers on prioritizing the energy transition.
High-rise Construction | Aug 11, 2022
Saudi Arabia unveils plans for a one-building city stretching over 100 miles long
Saudi Arabia recently announced plans for an ambitious urban project called The Line—a one-building city in the desert that will stretch 170 kilometers (106 miles) long and only 200 meters (656 feet) wide.
| Aug 10, 2022
U.S. needs more than four million new apartments by 2035
Roughly 4.3 million new apartments will be necessary by 2035 to meet rising demand, according to research from the National Multifamily Housing Council (NMHC) and National Apartment Association.
| Aug 10, 2022
Gresham Smith Founder, Batey M. Gresham Jr., passes at Age 88
It is with deep sadness that Gresham Smith announces the passing of Batey M. Gresham Jr., AIA—one of the firm’s founders.
| Aug 9, 2022
Work-from-home trend could result in $500 billion of lost value in office real estate
Researchers find major changes in lease revenues, office occupancy, lease renewal rates.
| Aug 9, 2022
5 Lean principles of design-build
Simply put, lean is the practice of creating more value with fewer resources.
| Aug 9, 2022
Designing healthy learning environments
Studies confirm healthy environments can improve learning outcomes and student success.
Legislation | Aug 8, 2022
Inflation Reduction Act includes over $5 billion for low carbon procurement
The Inflation Reduction Act of 2022, recently passed by the U.S. Senate, sets aside over $5 billion for low carbon procurement in the built environment.
| Aug 8, 2022
Mass timber and net zero design for higher education and lab buildings
When sourced from sustainably managed forests, the use of wood as a replacement for concrete and steel on larger scale construction projects has myriad economic and environmental benefits that have been thoroughly outlined in everything from academic journals to the pages of Newsweek.
