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Heavy Engineering (Non-Building) Construction Flat in September

0 1817 Market Intelligence

Heavy engineering (non-building) construction spending held steady in September following a 2.9% advance in August. Year-to-date, heavy engineering spending was also unchanged compared to the same period last year. The heavy construction sector is forecast to hold up well as the outlook for the economy improves, encouraging private sector investment. Environmental regulations will force both local governments and private industry to invest to meet these requirements.

Heavy engineering (non-building) construction spending held steady in September following a 2.9% advance in August. Year-to-date, heavy engineering spending was also unchanged compared to the same period last year. The heavy construction sector is forecast to hold up well as the outlook for the economy improves, encouraging private sector investment. Environmental regulations will force both local governments and private industry to invest to meet these requirements. The result is that after falling 1.0% this year, construction spending on heavy engineering projects is forecasted to increase 5.8% in 2012 and 5.9% in 2013. The 2012 growth forecast is down 0.8% and the 2013 forecast is down 1.1% from last month as prospects for federal spending on infrastructure have dimmed.

U.S. Heavy Engineering (Non-Building) Construction
(billions of U.S. current dollars)

  Monthly Figures*
(latest actual values)
3-Month
Moving Average
Actual Forecast
  Jul-11 Aug-11 Sep-11 Jul-11 Aug-11 Sep-11 2008 2009 2010 2011 2012 2013
Transportation 34.165 36.158 35.331 35.247 35.426 35.218 35.471 36.701 38.232 36.041 37.358 40.640
  Month-over-Month % Change -5.0% 5.8% -2.3% -1.9% 0.5% -0.6%            
  Year-over-year % Change (NSA) -12.2% -4.1% -11.4%       11.3% 3.5% 4.2% -5.7% 3.7% 8.8%
Communication 18.417 17.746 18.142 18.141 18.156 18.102 26.487 19.753 18.261 18.030 19.182 21.407
  0.6% -3.6% 2.2% 0.5% 0.1% -0.3%            
  -3.7% -2.8% 1.0%       -4.0% -25.4% -7.6% -1.3% 6.4% 11.6%
Power 88.367 90.913 90.693 87.867 89.419 89.991 81.075 88.861 78.540 86.543 91.947 91.011
  -0.7% 2.9% -0.2% 2.8% 1.8% 0.6%            
  16.1% 18.0% 14.6%       22.7% 9.6% -11.6% 10.2% 6.2% -1.0%
Highway 75.989 79.242 80.362 75.723 77.200 78.531 81.361 82.166 82.657 78.229 83.313 89.930
  -0.5% 4.3% 1.4% 0.5% 2.0% 1.7%            
  -4.4% -3.3% -5.7%       6.1% 1.0% 0.6% -5.4% 6.5% 7.9%
Water and Sewer 36.998 36.873 36.931 36.503 36.707 36.934 42.448 40.301 41.368 37.348 39.816 44.811
  2.1% -0.3% 0.2% 0.6% 0.6% 0.6%            
  -13.4% -14.5% -12.5%       4.4% -5.1% 2.6% -9.7% 6.6% 12.5%
Conservation & Development 6.710 7.156 6.602 7.063 6.997 6.823 5.234 5.750 6.937 7.059 6.868 6.989
  -5.8% 6.6% -7.7% -2.7% -0.9% -2.5%            
  -2.0% 9.4% -8.9%       -0.5% 9.9% 20.6% 1.8% -2.7% 1.8%
Total 260.646 268.088 268.061 260.545 263.906 265.598 272.076 273.532 265.995 263.250 278.483 294.789
  -0.9% 2.9% 0.0% 0.8% 1.3% 0.6%            
  -1.3% 0.7% -2.1%       9.7% 0.5% -2.8% -1.0% 5.8% 5.9%

*Monthly figures are seasonally adjusted at annual rates (SAAR figures). The total includes some miscellaneous buildings.
Source: Census Bureau, U.S. Department of Commerce. Forecast: Reed Construction Data.

by Bernie Markstein

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