Industry News

Nonresidential Construction Spending Rises 0.5 Percent in October

The nation’s nonresidential construction industry experienced a modest gain in October as spending increased 0.5 percent to $571.3 billion, according to the Dec. 3 report by the U.S. Census Bureau. Total nonresidential construction spending-which includes both private and public projects-is up 5.1 percent compared to one year ago.

Private nonresidential construction spending increased 0.3 percent for the month and is up 10.7 percent year over year. Public nonresidential construction spending increased 0.8 percent for the month, but is 0.4 percent lower than the same time last year.

Eleven of sixteen nonresidential construction subsectors posted increases in October, including transportation, up 5.3 percent; water supply, up 4.3; and lodging, up 3.9 percent. Ten construction subsectors experienced increases in spending year over year, including lodging, up 29.3 percent; transportation, up 21.2 percent; and power, up 19.2 percent.

In contrast, five construction subsectors posted decreases in spending for the month, including communication, down 6.9 percent; manufacturing, down 2.7 percent; highway and street, down 2.3 percent; sewage and waste disposal, down 1.7 percent; and conservation and development, down 1.5 percent. Construction subsectors registering decreases in year-over-year spending include conservation and development, down 13.6 percent; water supply, down 7.2 percent; highway and street, down 4.8 percent; communication, down 3.8 percent; sewage and waste disposal, down 3.8 percent; and religious, down 3.7 percent.

Residential construction spending jumped 3 percent for the month and is up 19.4 percent from the same time last year.

Total construction spending-which encompasses both nonresidential and residential spending- was up 1.4 percent for the month and is up 9.6 percent compared to October 2011.