ABC: Nonresidential Construction Spending Dips .5% in December

  • Posted on

National nonresidential construction spending decreased by 0.5% in December, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $943.5 billion for the month. Spending fell on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending was down .5%, while public nonresidential construction spending was down .4% in December.

Filed under: Economic NewsTagged with: ,

Total Construction Starts Increase in December

  • Posted on

Total construction starts jumped 27% in December to a seasonally adjusted annual rate of $1.185 trillion, according to Dodge Construction Network. During the month, nonresidential building starts increased 51%, nonbuilding starts increased 30% and residential starts rose less than 1%. Across 2022, total construction starts were 15% higher than in 2021. Nonresidential building starts rose 38% over the year, nonbuilding starts were up 19% and residential starts were down 3%. Nonbuilding construction starts rose 30% in December to a seasonally adjusted annual rate of $281.4 billion. The utility/gas category was the main driver of the growth due to the start of a transmission … Read more

Filed under: Economic NewsTagged with: , , ,

PMSJ Releases Quarterly Market Forecast

  • Posted on

PSMJ’s latest Quarterly Market Forecast survey of 115 A/E/C executives (collected between Dec. 28 and Jan. 10) revealed an overall proposal activity Net Plus/Minus Index value of just 8. Any NPMI value above zero indicates that more respondents are seeing an increase in proposal activity compared to the prior quarter (+100 indicates all respondents are seeing an increase in proposal activity, -100 indicates all respondents are seeing a decrease in proposal activity). Since proposal activity is a leading indicator for backlog, revenue, and — ultimately — cash flow, the latest NPMI values provide a valuable glimpse into cash flow over … Read more

Filed under: Economic NewsTagged with: , ,

Nonresidential Construction Spending Expected to Moderate Through 2024

  • Posted on

While spending on nonresidential construction picked up momentum toward the end of 2022, construction spending will moderate in 2023 and slow significantly in 2024, according to a new report from the American Institute of Architects. Despite macroeconomic headwinds such as inflation, rising interest rates and weak consumer sentiment scores, the AIA’s Consensus Construction Forecast panel is projecting nonresidential construction spending to grow 5.8%  in 2023 but slow to under 1% in 2024. Similar to 2022, growth in construction spending in 2023 will be uneven with a projected 2.6% increase in the commercial sector, 15.1% for industrial facilities and 4.1% for … Read more

Filed under: Economic NewsTagged with: ,

Construction Firms Look to Public Sector Demand in 2023; 69% of Firms Plan to Hire, Says AGC

  • Posted on

A new industry outlook survey from The Associated General Contractors of America and Sage shows contractors expect infrastructure and other public-sector funding will help as growth slows for many types of private construction. Labor shortages and supply chain issues persist. Construction contractors are less optimistic about many private-sector segments than they were a year ago, but their expectations for the public sector market have remained relatively bullish. The findings are detailed in High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges: The 2023 Construction Hiring & Business Outlook. “Contractors are optimistic about the construction outlook for 2023, yet … Read more

Filed under: Economic NewsTagged with: ,