ABC: Nonresidential Construction Spending Falls Sharply in July

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National nonresidential construction spending decreased 0.2% in July, 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 $1.24 trillion. Spending was down on a monthly basis in 7 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.5%, while public nonresidential construction spending was up 0.3% in July. “Nonresidential construction spending fell for a third consecutive month in July and is now down 2.5% from the December 2023 record high,” said ABC Chief Economist Anirban Basu. “Of course, that’s in nominal terms. With … Read more

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AIA/Deltek Releases Latest Architecture Billings Index

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The AIA/Deltek Architecture Billings Index continues to weaken posting a score of 46.2 for July, down from 46.8 in June, indicating that a majority of firms are still experiencing declining firm billings. Inquiries into new work grew slowly but steadily this month, following a brief three-month pause earlier this year. However, design contract values fell again in July as firms struggle to convert inquiries into projects—a challenge persisting alongside declining billings for over two and a half years. Billings have been negative for 31 of the last 34 months. “Business conditions remain challenging for architecture firms nationwide, with billings declining … Read more

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ABC: Construction Materials Prices Jump 0.4% in July

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Construction input prices increased 0.4% in July compared to the previous month, according to an Associated Builders and Contractors analysis’ of U.S. Bureau of Labor Statistics’ Producer Price Index data released. Nonresidential construction input prices also increased 0.4% for the month. Overall construction input prices are 2.2% higher than a year ago, while nonresidential construction input prices are 2.6% higher. Prices increased in 2 of the 3 energy categories last month. Crude petroleum and unprocessed energy materials prices were up 1.7% and 0.5%, respectively, while natural gas prices decreased 2.1% in July. “Construction materials prices continued to increase too quickly … Read more

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ABC: Construction Backlog Indicator Rises, Contractor Optimism Slips in July

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Associated Builders and Contractors reported that its Construction Backlog Indicator rose to 8.8 months in July, according to an ABC member survey conducted July 24 to Aug. 4. The reading is up 0.4 months since July 2024.  Backlog is up on a year-over-year basis in every region except for the South. Despite the lack of growth, backlog in the South remains significantly longer than in any other region. ABC’s Construction Confidence Index reading for sales and profit margins declined in July, while the reading for staffing levels rose to the highest level since April. The readings for all three components … Read more

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ABC: Nonresidential Construction Spending Contracts in 6 of Past 7 Months

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National nonresidential construction spending decreased 0.1% in June, 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 $1.241 trillion. Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.3% for the month, while public nonresidential construction spending inched 0.1% higher. “Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months,” said ABC Chief Economist Anirban Basu. “Recent declines would be worse if not for ongoing increases in public … Read more

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