Construction Forecasts

News & Analysis

Nonresidential Building Construction Spending Declined 1.1% in April

06/07/2011 by Jim Haughey, RCD Chief Economist

Nonresidential construction spending fell 1.1% in April after an upward spike in March. Recovery remains on hold in a newly sluggish economy. The private commercial market is poised to recover with recent improvements in rental and occupancy rates and lending interest by investors. The value of starts has steadied well above the cyclical low level and design work in progress continues to expand. The market outlook is exactly the opposite for institutional building. Contractors are quickly working off the tail end of the federal stimulus funds and earlier state and local appropriations with little likelihood that public construction funding will be sustained in 2011-12.

Nonresidential building construction spending declined 23.4% in 2010 and may decline a little more this spring before beginning to expand. Spending will drop 7.5% in 2011 and then rise 10.2% in 2012.

U.S. Nonresidential Construction
(billions of U.S. current dollars)

  Monthly Figures*
(latest actual values)
Annual Figures
  Actual Forecast
  Mar-11 Apr-11 2007 2008 2009 2010 2011 2012
Lodging (% change is period versus
same period, previous year)
8.586 8.168 28.683 35.803 25.458 11.467 8.334 9.171
-29.9% -29.8% 59.5% 24.8% -28.9% -55.0% -27.3% 10.0%
Office 34.147 33.505 65.198 68.403 52.868 37.514 35.010 40.388
  -13.5% -12.5% 20.4% 4.9% -22.7% -29.0% -6.7% 15.4%
Commercial (mainly retail) 39.648 39.213 89.298 86.395 55.421 40.935 40.548 46.213
  -5.1% -6.5% 16.5% -3.3% -35.9% -26.1% -0.9% 14.%0
Health Care 39.805 40.497 43.725 46.830 45.151 40.081 41.169 45.288
  -2.3% 2.4% 13.6% 7.1% -3.6% -11.2% 2.7% 10.0%
Education 81.991 80.630 96.514 104.682 102.874 87.839 80.627 84.450
  -7.9% -8.2% 13.4% 8.5% -1.7% -14.6% -8.2% 4.7%
Religious 4.588 4.441 7.541 7.230 6.227 5.322 4.574 4.940
  -19.0% -18.9% -2.6% -4.1% -13.9% -14.5% -14.0% 8.0%
Public Safety 10.624 10.564 10.172 13.086 14.129 11.885 10.856 11.463
  -19.3% -15.9% 30.4% 28.6% 8.0% -15.9% -8.7% 5.%6
Amusement/Recreation 15.657 15.104 21.169 21.855 18.885 16.940 15.720 17.433
  -2.5% -10.8% 11.5% 3.2% -13.6% -10.%3 -7.2% 10.9%
Manufacturing 33.131 32.836 40.503 53.099 58.702 38.949 32.208 37.175
  -27.2% -26.7% 25.3% 31.1% 10.6% -33.6% -17.%3 15.4%
Total 265.392 0.001 402.803 437.383 379.715 290.931 269.047 296.519
  -12.6% -100.0% 18.73% 8.58% -13.18% -23.38% -7.52% 10.21%

*Monthly figures are seasonally adjusted at annual rates (SAAR figures).
Actuals: U.S. Census Bureau (Department of Commerce) (put-in-place investment figures).
Forecasts and table: Reed Construction Data.


Email

RSS Feed

» return to previous page
10398

Member Comments

Post Your Own Comments 
» Not a member? Register now to become one. Otherwise, login to post your comments on this article.

click here to update your log-in and member information

click here to maintain your company profile & view metrics

Keep Up To Date with eNewsletters
Keep up to date with our variety of complimentary weekly and monthly eNewsletters covering the construction industry.
Join accessArchitecture Now!
accessArchitecture members get free pre-design leads in exchange for providing project information