Nonresidential building construction spending rose a modest 0.1% in November, essentially unchanged from October when spending dropped 3.1%. Year to date, the measure was down 5.0% from the same period a year earlier. “For lease” private projects spending slipped 0.3% following a 2.3% fall in October. Hotel and office construction posted modest gains of 0.3% and 0.2%, respectively, following significant declines of 5.9% and 2.0% in October. Construction spending for institutional projects rose 0.5% after decreasing 2.7% in October. Manufacturing construction spending declined 0.8% in November after plummeting 6.2% the previous month.
Concerns over Europe and oil prices are acting as a drag on nonresidential construction spending. However, with the economy continuing to improve, spending totals will strengthen throughout 2012 and 2013. Low long-term interest rates remain a positive for those contemplating going forward with a project. The stronger foreign exchange value of the dollar is helping to contain input costs but is making it harder for exporters and increasing domestic competition from imports.
The forecast is for nonresidential construction spending to improve in 2012, rising 4.7%, and to accelerate in 2013, advancing 8.1%.
U.S. Nonresidential 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 | |
| Lodging | 8.659 | 8.150 | 8.178 | 8.527 | 8.448 | 8.329 | 35.806 | 25.499 | 11.329 | 8.464 | 8.788 | 9.656 |
| Month-over-Month % Change | 1.5% | -5.9% | 0.3% | -0.5% | -0.9% | -1.4% | ||||||
| Year-over-year % Change (NSA) | -17.7% | -18.7% | -19.0% | 24.7% | -28.8% | -55.6% | -25.3% | 3.8% | 9.9% | |||
| Office | 34.967 | 34.274 | 34.339 | 34.456 | 34.490 | 34.527 | 68.563 | 51.908 | 37.573 | 34.338 | 36.342 | 40.095 |
| 2.2% | -2.0% | 0.2% | -0.5% | 0.1% | 0.1% | |||||||
| -6.3% | -5.5% | -3.0% | 5.1% | -24.3% | -27.6% | -8.6% | 5.8% | 10.3% | ||||
| Commercial (mainly retail) | 44.939 | 44.136 | 43.797 | 45.657 | 45.025 | 44.291 | 86.212 | 54.069 | 40.522 | 43.356 | 45.404 | 48.976 |
| -2.3% | -1.8% | -0.8% | -0.4% | -1.4% | -1.6% | |||||||
| 12.3% | 12.4% | 11.7% | -3.9% | -37.3% | -25.1% | 7.0% | 4.7% | 7.9% | ||||
| Health Care | 41.051 | 38.436 | 39.159 | 41.093 | 40.027 | 39.549 | 46.902 | 44.845 | 39.879 | 39.815 | 41.655 | 45.349 |
| 1.1% | -6.4% | 1.9% | -0.4% | -2.6% | -1.2% | |||||||
| -0.7% | -4.8% | -4.5% | 7.2% | -4.4% | -11.1% | -0.2% | 4.6% | 8.9% | ||||
| Education | 87.016 | 85.699 | 86.258 | 85.772 | 86.216 | 86.324 | 104.890 | 103.202 | 88.227 | 84.486 | 87.046 | 91.791 |
| 1.3% | -1.5% | 0.7% | 0.7% | 0.5% | 0.1% | |||||||
| -3.9% | 1.8% | 3.1% | 8.4% | -1.6% | -14.5% | -4.2% | 3.0% | 5.5% | ||||
| Religious | 4.143 | 4.056 | 3.883 | 4.128 | 4.145 | 4.027 | 7.225 | 6.192 | 5.208 | 4.182 | 4.172 | 4.472 |
| -2.2% | -2.1% | -4.3% | 2.6% | 0.4% | -2.8% | |||||||
| -19.3% | -17.9% | -22.1% | -4.2% | -14.3% | -15.9% | -19.7% | -0.2% | 7.2% | ||||
| Public Safety | 9.828 | 9.705 | 9.901 | 9.891 | 9.924 | 9.811 | 13.083 | 13.787 | 11.118 | 9.870 | 9.955 | 10.151 |
| -4.0% | -1.3% | 2.0% | -1.5% | 0.3% | -1.1% | |||||||
| -7.9% | -5.9% | -2.3% | 28.3% | 5.4% | -19.4% | -11.2% | 0.9% | 2.0% | ||||
| Amusement/Recreation | 16.142 | 15.990 | 15.430 | 15.723 | 15.902 | 15.854 | 21.829 | 19.404 | 16.959 | 15.570 | 16.257 | 17.382 |
| -0.9% | -3.5% | 1.7% | 1.1% | -0.3% | ||||||||
| -10.6% | -5.7% | -10.4% | 2.9% | -11.1% | -12.6% | -8.2% | 4.4% | 6.9% | ||||
| Manufacturing | 40.565 | 38.058 | 37.772 | 38.958 | 39.621 | 38.798 | 53.234 | 56.836 | 38.106 | 35.725 | 39.130 | 44.338 |
| 0.8% | -6.2% | -0.8% | 1.9% | 1.7% | -2.1% | |||||||
| 14.5% | 11.3% | 15.9% | 31.0% | 6.8% | -33.0% | -6.2% | 9.5% | 13.3% | ||||
| Total** | 287.310 | 278.504 | 278.717 | 284.205 | 283.797 | 281.510 | 437.744 | 375.742 | 288.921 | 275.805 | 288.748 | 312.209 |
| 0.6% | -3.1% | 0.1% | 0.4% | -0.1% | -0.8% | |||||||
| -0.6% | 0.8% | 1.6% | 8.4% | -14.2% | -23.1% | -4.5% | 4.7% | 8.1% | ||||
* Monthly figures are seasonally adjusted at annual rates (SAAR figures). |
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