“The recent acceleration in economic activity sets the stage for a much better 2014, both for the broader economy and the nonresidential construction industry.” —ABC Chief Economist Anirban Basu.
Nonresidential construction spending grew 0.6 on a monthly and yearly basis in November 2013, according to the Jan. 2 release by the U.S. Census Bureau. In November, spending totaled $583.436 billion on a seasonally adjusted, annualized basis.
"Construction activity bounced back in November, due in part to the end of the federal government shutdown and an accompanying return to normalcy," said Associated Builders and Contractors Chief Economist Anirban Basu. "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.
"The recent acceleration in economic activity sets the stage for a much better 2014, both for the broader economy and the nonresidential construction industry," said Basu. "We can expect nonresidential construction spending to expand during the first half of the year."
Seven of the 16 nonresidential construction subsectors posted spending increases in November:
• Religious spending grew 0.6 percent for the month, but is down 5.6 percent from the same time last year.
• Education-related construction spending expanded 0.2 percent for the month and is up 1.3 percent on a year-over-year basis.
• Commercial construction spending grew 4.5 percent in November and is up 17.4 percent on a yearly basis.
• Communication-related construction spending expanded 10.9 percent for the month but is down 10.7 percent compared to November 2012.
• Office construction spending was up 2.6 percent in November and is 5.6 percent higher than the same time last year.
• Construction spending in the power category grew 3 percent on a monthly basis but fell 21.4 percent on an annual basis.
• Manufacturing construction spending expanded 0.6 percent in November and is up 14.4 percent compared to the same time one year ago.
Spending declined in nine nonresidential construction subsectors in November:
• Public safety-related construction spending fell 0.3 percent, but has grown 2.5 percent on a year-over-year basis.
• Amusement and recreation-related spending was down 0.6 percent on a monthly basis, but has expanded 5.5 percent from the same time last year.
• Conservation and development spending was down 4.7 percent for the month, but is up 0.1 percent for the year.
• Lodging spending fell 0.2 percent on a monthly basis but is up 31.2 percent on a year-over-year basis.
• Water supply spending declined 3.7 percent for the month but is 2 percent higher than the same time last year.
• Health care-related construction spending was down 2.8 percent for the month and is down 0.3 percent for the year.
• Sewage and waste disposal-related construction spending declined 8 percent for the month and has fallen 5.9 percent on a 12-month basis.
To view the previous Spending report, click HERE.