flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Nonresidential construction spending expands in December 2014

Contractors

Nonresidential construction spending expands in December 2014

Seven of 16 nonresidential construction subsectors posted increases in spending in December on a monthly basis.


By Associated Contractors and Builders | February 3, 2015
Nonresidential construction spending expands in December 2014

Spending for the month totaled $627.1 billion on a seasonally adjusted, annualized basis, 5.9% higher than December 2013. Photo credit: Tech. Sgt. Dawn M. Price, U.S. Air Force, Wikimedia Commons.

Nonresidential construction spending expanded 0.4% on a monthly basis in December 2014, according to the Feb. 2 release from the U.S. Census Bureau.

Spending for the month totaled $627.1 billion on a seasonally adjusted, annualized basis, 5.9% higher than December 2013. The government also upwardly revised November's spending estimate from $617 billion to $624.8 billion and October's figure from $623 billion to $627.4 billion.

"Despite the slight expansion indicated in today's report, nonresidential construction lost some of its momentum during the final two months of 2014; however, this should represent only a minor dip in the industry's momentum headed into 2015," said Associated Builders and Contractors Chief Economist Anirban Basu. "It is possible that the past two spending reports indicate the U.S. economy is not as robust as many analysts believe but it is important to remember that 2014, as whole, was a solid year of recovery for the industry and total nonresidential construction spending was 6.6 % higher than in 2013.

 

 

"While some may surmise that the lack of momentum in nonresidential construction spending is related to the sharp fall in oil prices, this does not appear to be the case," said Basu. "Oil-related construction categories like transportation and manufacturing have retained their momentum while categories such as public safety and education have experienced declines in spending. It is also possible that the decline simply represents noise in the data; after all, October and November's figures have been revised higher while the December estimate remains preliminary."

Seven of 16 nonresidential construction subsectors posted increases in spending in December on a monthly basis:

  • Communication construction spending expanded 2.5% for the month, but is down 9.5% for the year.
  • Highway and street-related construction spending grew 2.5% in December and is up 10.5% compared to the same time last year.
  • Power-related construction spending grew 1% for the month, but is 8.3% lower than the same time one year ago.
  • Conservation and development-related construction spending grew 1.7% for the month and is up 24% on a yearly basis.
  • Office-related construction spending grew 1.7% in December and is up 17.6% from the same time one year ago.
  • Manufacturing-related spending expanded by 2% in December and is up 18.1% for the year.
  • Amusement and recreation-related construction spending gained 1.9% on a monthly basis and is up 11.9% from the same time last year.

 

Spending in nine nonresidential construction subsectors declined in December on a monthly basis:

  • Healthcare-related construction spending fell 1% for the month and is down 2.1% for the year.
  • Education-related construction spending fell 1.2% for the month, but is up 3.9% on a year-over-year basis.
  • Spending in the water supply category fell 0.3% from November but is 10.1% lower than at the same time last year.
  • Construction spending in the transportation category fell 0.2% on a monthly basis, but has expanded by 9.5% on an annual basis.
  • Public safety-related construction spending fell 4% on a monthly basis and is down 9.5% on a year-over-year basis.
  • Commercial construction spending lost 1.7% in December, but is up 10.7% on a year-over-year basis.
  • Religious spending fell 4.1% for the month and is down 1.3% from the same time last year.
  • Lodging construction spending fell 1.4% on a monthly basis, but is up 18.3% on a year-over-year basis.
  • Sewage and waste disposal-related construction spending fell 2% for the month, but has grown 10.5% on a 12-month basis.

To view the previous spending report, click here.

Related Stories

Design Innovation Report | Apr 19, 2023

Reinforced concrete walls and fins stiffen and shade the National Bank of Kuwait skyscraper

When the National Bank of Kuwait first conceived its new headquarters more than a decade ago, it wanted to make a statement about passive design with a soaring tower that could withstand the extreme heat of Kuwait City, the country’s desert capital. 

Design Innovation Report | Apr 19, 2023

HDR uses artificial intelligence tools to help design a vital health clinic in India

Architects from HDR worked pro bono with iKure, a technology-centric healthcare provider, to build a healthcare clinic in rural India.

Design Innovation Report | Apr 19, 2023

Meet The Hithe: A demountable building for transient startups

The Hithe, near London, is designed to be demountable and reusable. The 2,153-sf building provides 12 units of business incubator workspace for startups.

Contractors | Apr 19, 2023

Rising labor, material prices cost subcontractors $97 billion in unplanned expenses

Subcontractors continue to bear the brunt of rising input costs for materials and labor, according to a survey of nearly 900 commercial construction professionals. 

Airports | Apr 18, 2023

India's mammoth new airport terminal takes ‘back to nature’ seriously

On January 15, 2023, Phase 1 of the Kempegowda International Airport’s Terminal 2, in Bengaluru, India, began domestic operations. The 2.75 million-sf building, designed by Skidmore, Owings & Merrill (SOM), is projected to process 25 million passengers annually, while providing its travelers with a healthier environment, thanks to extensive indoor-outdoor landscaping that offers serenity to what is normally a frenzied experience.

Contractors | Apr 18, 2023

New York City construction fatalities, injuries rise in 2022 as activity booms

New York City’s construction fatalities rose from nine in 2021 to eleven in 2022, according to a report by the New York City Department of Buildings. Recorded injuries also rose to 554 last year after leveling off in 2020 and 2021.

Resiliency | Apr 18, 2023

AI-simulated hurricanes could aid in designing more resilient buildings

Researchers at the National Institute of Standards and Technology (NIST) have devised a new method of digitally simulating hurricanes in an effort to create more resilient buildings. A recent study asserts that the simulations can accurately represent the trajectory and wind speeds of a collection of actual storms. 

Green | Apr 18, 2023

USGBC and IWBI unveil streamlined certification pathway for LEED and WELL green building programs

The U.S. Green Building Council, Green Business Certification Inc., and the International WELL Building Institute released a streamlined process for projects pursuing certifications for the LEED green building rating system and the WELL Building Standard. The new protocol simplifies documentation for projects that are pursuing both certifications at the same time or that have already earned one certification and are looking to add the other. 

K-12 Schools | Apr 18, 2023

ASHRAE offers indoor air quality guide for schools

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has released a guide for educators, administrators, and school districts on indoor air quality. The guide can be used as a tool to discuss options to improve indoor air quality based on existing HVAC equipment, regional objectives, and available funding. 

Data Centers | Apr 14, 2023

JLL's data center outlook: Cloud computing, AI driving exponential growth for data center industry

According to JLL’s new Global Data Center Outlook, the mass adoption of cloud computing and artificial intelligence (AI) is driving exponential growth for the data center industry, with hyperscale and edge computing leading investor demand.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021