Nonresidential construction spending slipped 0.7 percent in the final month of 2016, but increased 4.6 percent over the previous year, according to analysis of U.S. Census Bureau data recently released by Associated Builders and Contractors (ABC). Nonresidential spending decreased from $713.1 billion in November to $708.2 billion in December on a seasonally adjusted, annualized basis.
Both November’s estimate ($713.1 billion) and October’s estimate ($707.1 billion) were upwardly revised by less than one-tenth of a percent. Private nonresidential spending remained flat for the month, while public nonresidential spending contracted 1.7 percent.
“Private spending growth, which has led nonresidential spending growth for months, remained flat in December and, as a result, the preexisting story of the industry remains fundamentally unchanged,” said ABC Chief Economist Anirban Basu in a release. “Public construction spending has been soft for many years and the December spending data merely served to extend that part of the tale. Spending in the sewage and waste disposal, transportation, and public safety sectors was particularly weak during the past 12 months. Private spending growth has been on-again, off-again for much of the year, so it is not a surprise that last month’s robust spending report was followed by a flat one.
“On the bright side, the architectural community became much busier in December, signaling an acceleration of commercial activity to come,” said Basu. “In addition, the new administration appears committed to fulfilling its campaign promises, including a pledge to step up infrastructure spending. This has asphalt, pavement and other infrastructure-intensive contractors expressing more confidence in their economic future than they have for many years. As such, the December data provide little insight into the future trajectory of nonresidential construction spending, which is set to improve markedly during the next six to 12 months.”
Related Stories
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.
Contractors | May 24, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023
Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.
Industry Research | May 22, 2023
2023 High Growth Study shares tips for finding success in uncertain times
Lee Frederiksen, Managing Partner, Hinge, reveals key takeaways from the firm's recent High Growth study.
Multifamily Housing | May 8, 2023
The average multifamily rent was $1,709 in April 2023, up for the second straight month
Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report.
