Nonresidential construction spending builds in November

by Jonathan McGaha | 8 January 2014 12:00 am

A recent increase in construction spending is leading some industry experts to an optimistic outlook for growth in 2014.

Nonresidential construction spending increased 0.6 percent from October 2013 to November 2013, and between November 2012 and November 2013, according to a U.S. Census Bureau News report on Jan. 2. Nonresidential construction spending was
$583.436 billion on a seasonally adjusted, annualized basis in November 2013.

Anirban Basu, Associated Builders and Contractors[1] chief economist, says construction activity increased in November, in part, because the federal government shutdown ended.

“Nonresidential construction spending was up 2.3 percent on a seasonally adjusted basis compared to September, which makes a better comparison because October was so unusual,” Basu says.

The recent acceleration in economic activity sets the stage for a much better 2014, Basu says, for the broader economy and the nonresidential construction industry.

“We can expect nonresidential construction spending to expand during the first half of the year,” Basu says.

Nonresidential construction spending increased in seven of 16 categories between October and November, according to a U.S. Census Bureau report, and spending in nine categories decreased.

Ups and downs by the numbers:

• Religious spending increased 0.6 percent between October and November, and decreased 5.6 percent compared with the same period in 2012.
• Education-related construction spending increased 0.2 percent between October and November, and increased 1.3 percent compared with the same period in 2012.
• Commercial construction spending increased 4.5 percent between October and November, and increased 17.4 percent compared with the same period in 2012.
• Communication-related construction spending increased 10.9 percent between October and November, and decreased 10.7 percent compared with the same period in 2012.
• Office construction spending increased 2.6 percent between October and November, and increased 5.6 percent compared with the same period in 2012.
• Construction spending in the power category increased 3 percent between October and November, and decreased 21.4 percent compared with the same period in 2012.
• Manufacturing construction spending increased 0.6 percent between October and November, and increased 14.4 percent compared with the same period in 2012.
• Public safety-related construction spending decreased 0.3 percent, and increased 2.5 percent compared with the same period in 2012.
• Amusement and recreation-related spending decreased 0.6 percent between October and November, and increased 5.5 percent during the same period in 2012.
• Conservation and development spending decreased 4.7 percent between October and November, and increased 0.1 percent during the same period in 2012.
• Lodging spending decreased 0.2 percent between October and November, and increased 31.2 percent compared with the same period in 2012.
• Water supply spending decreased 3.7 percent between October and November, and increased 2 percent compared with the same period in 2012.
• Health care-related construction spending decreased 2.8 percent between October and November, and decreased 0.3 percent compared with the same period in 2012.
• Sewage and waste disposal-related construction spending decreased 8 percent between October and November, and decreased 5.9 percent compared with the same period in 2012.

Source URL: https://www.metalconstructionnews.com/news/industry-news/nonresidential-construction-spending-builds-in-november/

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