Ending 2011 on a relatively strong note, total nonresidential construction spending increased 1.9 percent in December to $567.8 billion, according to the Feb. 1 construction spending report by the U.S. Census Bureau (see graph below). Year-over-year, total nonresidential construction spending is up 4.5 percent.
Private nonresidential construction spending jumped 3.3 percent for the month and was up 11.4 percent from the same time last year. Public nonresidential construction spending increased 0.5 percent from November, but was down 1.8 percent from December 2010.
Ten of the sixteen nonresidential construction subsectors posted increases in spending for the month. The largest gains came in manufacturing, up 13.4 percent; communication, 6.6 percent higher; and power, up 2.7 percent. Six nonresidential construction subsectors experienced increases in spending during a 12-month period. These include manufacturing, up 44.2 percent; commercial, up 14.0 percent; power, 11.7 percent higher; education, up 4.4 percent; public safety, up 3.3 percent; and highway and street construction, 2.4 percent higher.
In contrast, construction subsectors posting the largest monthly decreases in spending include lodging, down 2.3 percent; public safety, 1.9 percent lower; and amusement and recreation, down 1.5 percent. Subsectors with the largest year-over-year decreases in spending include religious, down 19.4 percent; lodging, 15.2 percent lower; transportation, down 9.8 percent; and conservation and development-related construction, down 9.0 percent.
Residential construction spending inched up 0.7 percent in December and was up 3.8 percent year-over-year. Overall, total construction spending – which includes both nonresidential and residential – rose 1.5 percent in for the month, and was up 4.3 percent compared to December 2010.