“The recent acceleration in economic activity sets the stage for a much better 2014 for both the broader economy and the nonresidential construction industry." —ABC Chief Economist Anirban Basu.
December represented the end of a three-month winning streak for nonresidential spending growth. According to a Feb. 3 release by the U.S. Census Bureau, nonresidential construction spending fell 1.3 percent on a monthly basis and 1.1 percent on a yearly basis in December. Spending for the month totaled $573.07 billion on a seasonally adjusted, annualized basis.
“The dip in nonresidential construction spending is partially attributable to a colder-than-normal December,” said Associated Builders and Contractors Chief Economist Anirban Basu. “December generally tends to represent a seasonal trough in construction spending and this release does not change the relatively upbeat nonresidential construction spending estimates for 2014.
“The recent acceleration in economic activity sets the stage for a much better 2014 for both the broader economy and the nonresidential construction industry,” said Basu. “Stakeholders should expect nonresidential construction spending to expand neatly during the first half of 2014 and beyond.”
Four of the 16 nonresidential construction subsectors posted increases in spending in December:
• Construction spending in the power category grew 2.7 percent on a monthly basis, but has declined 20.5 percent on an annual basis.
• Conservation and development-related construction spending was up 0.1 percent for the month and is up 4.4 percent for the year.
• Highway and street-related construction spending expanded 1.8 percent in December and is up 11.2 percent compared to the same time last year.
• Spending in the transportation category was up 0.7 percent on the month and 10.3 percent for the year.
Spending in 12 nonresidential construction subsectors decreased in December:
• Religious spending fell 2.1 percent for the month and is down 7.2 percent from the same time last year.
• Education-related construction spending fell 5.5 percent for the month and is down 8.2 percent on a year-over-year basis.
• Commercial construction spending fell 1.3 percent in December, but is up 19.7 percent on a year-over-year basis.
• Communication-related construction spending fell 0.4 percent for the month and is down 12.9 percent on a yearly basis.
• Office-related construction spending dipped 0.2 percent in December and is down 6 percent from the same time one year ago.
• Manufacturing-related construction spending fell 4.9 percent in December and is down 2 percent from the same time one year ago.
• Public safety-related construction spending fell 7.2 percent on a monthly basis and has declined 4.1 percent on a year-over-year basis.
• Amusement and recreation-related construction spending was down 3.1 percent on a monthly basis, but has expanded 4.8 percent from the same time last year.
• Lodging construction spending fell 0.1 percent on a monthly basis, but is up 31 percent on a year-over-year basis.
• Water supply fell 8.4 percent for the month and is 5.4 percent higher than the same time last year.
• Health care-related construction spending fell 1.5 percent for the month and is down 1.9 percent for the year.
• Sewage and waste disposal-related construction spending declined 4.1 percent for the month and has fallen 2.9 percent on a 12-month basis.
To view the previous Spending report, click HERE.
