Heavy engineering (non-building) construction spending rose 1.8% in November, the fourth month in a row spending rose. Year to date, heavy engineering spending is down a modest 0.3% compared to the same period in 2010. Spending on power construction surged 5.1% in November following a 3.1% increase in October. Power spending increased in eight of the last nine months and was up 14.2% year to date from the same period a year earlier.
The heavy engineering construction sector is projected to hold up well as the economy continues to improve, encouraging private sector investment. Environmental regulations will force both local governments and private industry to invest to meet these requirements. Public-private partnerships and improving revenues at the state level will provide some support for heavy engineering projects. The forecast is for heavy engineering projects construction spending to increase 6.4% in 2012 and 4.4% in 2013.
U.S. Heavy Engineering (Non-Building) Construction |
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| Monthly Figures* (latest actual values) |
3-Month Moving Average |
Actual | Forecast | |||||||||
| Sep-11 | Oct-11 | Nov-11 | Sep-11 | Oct-11 | Nov-11 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |
| Transportation | 35.173 | 34.400 | 34.542 | 35.042 | 35.120 | 34.705 | 35.471 | 36.701 | 38.232 | 35.671 | 35.362 | 37.403 |
| Month-over-Month % Change | -1.7% | -2.2% | 0.4% | -0.7% | 0.2% | -1.2% | ||||||
| Year-over-year % Change (NSA) | -10.5% | -9.6% | -6.3% | 11.3% | 3.5% | 4.2% | -6.7% | -0.9% | 5.8% | |||
| Communication | 18.158 | 17.410 | 16.550 | 18.110 | 17.775 | 17.373 | 26.487 | 19.753 | 18.261 | 17.709 | 17.820 | 19.887 |
| 2.3% | -4.1% | -4.9% | -0.3% | -1.9% | -2.3% | |||||||
| 1.6% | -4.6% | -11.5% | -4.0% | -25.4% | -7.6% | -3.0% | 0.6% | 11.6% | ||||
| Power | 92.114 | 94.992 | 99.823 | 90.143 | 92.352 | 95.643 | 81.075 | 88.861 | 78.540 | 87.996 | 97.696 | 96.702 |
| 2.4% | 3.1% | 5.1% | 1.2% | 2.4% | 3.6% | |||||||
| 17.0% | 12.2% | 6.5% | 22.7% | 9.6% | -11.6% | 12.0% | 11.0% | -1.0% | ||||
| Highway | 81.001 | 81.343 | 82.865 | 78.539 | 80.324 | 81.736 | 81.361 | 82.166 | 82.657 | 78.766 | 85.536 | 92.054 |
| 3.0% | 0.4% | 1.9% | 2.0% | 2.3% | 1.8% | |||||||
| -5.1% | -5.1% | -2.1% | 6.1% | 1.0% | 0.6% | -4.7% | 8.6% | 7.6% | ||||
| Water and Sewer | 36.967 | 37.169 | 37.234 | 37.065 | 37.122 | 37.123 | 42.448 | 40.301 | 41.368 | 37.302 | 38.106 | 40.590 |
| -0.7% | 0.5% | 0.2% | 0.6% | 0.2% | 0.0% | |||||||
| -12.5% | -12.6% | -8.7% | 4.4% | -5.1% | 2.6% | -9.8% | 2.2% | 6.5% | ||||
| Conservation & Development | 6.559 | 6.732 | 5.950 | 6.771 | 6.778 | 6.414 | 5.234 | 5.750 | 6.937 | 6.964 | 6.742 | 6.865 |
| -6.9% | 2.6% | -11.6% | -2.7% | 0.1% | -5.4% | |||||||
| -9.7% | -7.0% | -24.5% | -0.5% | 9.9% | 20.6% | 0.4% | -3.2% | 1.8% | ||||
| Total** | 269.972 | 272.046 | 276.964 | 265.670 | 269.470 | 272.994 | 272.076 | 273.532 | 265.995 | 264.408 | 281.262 | 293.501 |
| 1.3% | 0.8% | 1.8% | 0.9% | 1.4% | 1.3% | |||||||
| -1.1% | -1.6% | -1.9% | 9.7% | 0.5% | -2.8% | -0.6% | 6.4% | 4.4% | ||||
* Monthly figures are seasonally adjusted at annual rates (SAAR figures). |
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Read more forecasts from Reed Construction Data:
Construction Spending Advances in November
Nonresidential Building Construction Ekes Out a Small Gain in November
New Residential Construction Spending Advances for the Second Month in a Row
