Nonresidential building construction spending advanced 1.0% at a seasonally adjusted (SA) rate in December, a partial recovery from the 1.4% drop in November. For the year, spending increased 5.6% over 2011.
“For lease” private projects spending rose a modest 0.4% (SA) in December after sinking 1.6% in November. For 2012, for lease spending increased 8.7% over 2011. Lodging construction spending grew 1.8% in December after plummeting 3.5% in November. Office construction spending rebounded 2.0% after dropping 1.7% in November. Retail construction spending held back the increase in for lease spending, falling 1.3%, following a 1.0% decline in November. For the year, lodging spending increased 24.7%, office construction spending increased 5.2%, and retail construction spending increased 8.2% over 2011.
Construction spending for institutional projects rose 0.9% in December after decreasing 1.7% in November. For 2012, institutional spending increased a modest 0.7% over 2011. All the categories in this group were up in December except for public safety spending, which slipped 0.2%. For the year, only two categories were up — health care (+2.4%) and education (+0.8%).
Manufacturing construction spending increased for the fifth consecutive month, jumping 2.5% in December after inching up 0.2% in November. Spending for October and November were revised up $0.9 billion and $1.5 billion, respectively. That turned declines for both months into gains. For the year, manufacturing construction spending increased 17.2% over 2011.
U.S. Nonresidential Construction | ||||||||
| Monthly Figures (1) (latest actual values) |
3-Month Moving Average | Year-to-Date (NSA) | ||||||
| Oct-12 | Nov-12 | Dec-12 | Oct-12 | Nov-12 | Dec-12 | Jan-11 to Dec-11 |
Jan-12 to Dec-12 |
|
| For Lease | 98.5 | 96.9 | 97.3 | 96.5 | 96.7 | 97.6 | 87.1 | 94.7 |
| Month-over-Month % Change |
4.0% | -1.6% | 0.4% | 1.7% | 0.2% | 0.9% | ||
| Year-over-year % Change (NSA) |
12.5% | 8.5% | 6.9% | -2.1% | 8.7% | |||
| Lodging | 11.8 | 11.4 | 11.6 | 11.5 | 11.4 | 11.6 | 8.9 | 11.1 |
| 6.7% | -3.5% | 1.8% | 0.7% | -0.5% | 1.5% | |||
| 32.2% | 21.5% | 16.1% | -23.7% | 24.7% | ||||
| Office | 38.3 | 37.6 | 38.3 | 37.3 | 37.4 | 38.1 | 34.6 | 36.5 |
| 5.6% | -1.7% | 2.0% | 2.2% | 0.3% | 1.9% | |||
| 12.5% | 8.3% | 8.5% | -8.5% | 5.2% | ||||
| Commercial (mainly retail) |
48.4 | 47.9 | 47.3 | 47.8 | 47.9 | 47.9 | 43.6 | 47.2 |
| 2.1% | -1.0% | -1.3% | 1.5% | 0.3% | -0.1% | |||
| 8.8% | 5.9% | 3.4% | 10.4% | 8.2% | ||||
| Institutional | 154.4 | 151.7 | 153.1 | 155.4 | 153.3 | 153.0 | 154.7 | 155.7 |
| 0.3% | -1.7% | 0.9% | -0.5% | -1.3% | -0.2% | |||
| -0.2% | -2.1% | -2.3% | -4.0% | 0.7% | ||||
| Health Care | 40.8 | 39.8 | 40.4 | 40.8 | 39.9 | 40.3 | 39.7 | 40.7 |
| 4.1% | -2.5% | 1.5% | -0.1% | -2.3% | 1.0% | |||
| 5.5% | -1.3% | -1.4% | 0.9% | 2.4% | ||||
| Education | 83.3 | 83.1 | 83.7 | 84.4 | 83.6 | 83.4 | 84.3 | 85.0 |
| -1.4% | -0.3% | 0.7% | -1.0% | -0.9% | -0.3% | |||
| -2.8% | -2.6% | -2.8% | -4.6% | 0.8% | ||||
| Religious | 3.9 | 3.6 | 3.7 | 3.8 | 3.8 | 3.8 | 4.2 | 3.9 |
| 6.1% | -7.7% | 1.5% | 0.2% | -1.6% | -0.2% | |||
| -0.8% | -8.3% | -10.8% | -20.1% | -7.8% | ||||
| Public Safety | 9.8 | 9.4 | 9.3 | 9.9 | 9.7 | 9.5 | 10.2 | 10.1 |
| -1.4% | -4.1% | -0.2% | -0.8% | -2.5% | -1.9% | |||
| -3.2% | -11.7% | -13.8% | -8.2% | -1.1% | ||||
| Amusement/ Recreation |
16.6 | 15.8 | 16.0 | 16.4 | 16.4 | 16.1 | 16.2 | 16.1 |
| -0.8% | -4.5% | 0.9% | 1.2% | -0.4% | -1.5% | |||
| 4.7% | -3.4% | -6.7% | -4.5% | -0.8% | ||||
| Manufacturing | 49.4 | 49.5 | 50.7 | 48.8 | 49.3 | 49.8 | 41.4 | 48.5 |
| 0.6% | 0.2% | 2.5% | 1.3% | 1.0% | 1.1% | |||
| 7.1% | 4.7% | -1.6% | 2.6% | 17.2% | ||||
| Total (2) | 302.3 | 298.1 | 301.0 | 300.7 | 299.4 | 300.4 | 283.2 | 298.9 |
| 1.5% | -1.4% | 1.0% | 0.5% | -0.5% | 0.4% | |||
| 5.1% | 1.7% | -0.2% | -2.5% | 5.6% | ||||
(1) Monthly figures are seasonally adjusted at annual rates (SAAR figures). | ||||||||
The Forecast
Nonresidential construction spending is forecasted to increase 4.1% this year and to more than double that growth rate in 2014, increasing 8.4%.
U.S. Nonresidential Construction | ||||||
| Actual | Forecast | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |
| For Lease | 131.5 | 88.9 | 87.1 | 94.7 | 101.1 | 109.3 |
| Year-over-year % Change | -31.0% | -32.4% | -2.1% | 8.7% | 6.7% | 8.2% |
| Lodging | 25.5 | 11.6 | 8.9 | 11.1 | 12.4 | 13.7 |
| -28.8% | -54.4% | -23.7% | 24.7% | 11.9% | 10.3% | |
| Office | 51.9 | 37.9 | 34.6 | 36.5 | 39.6 | 42.8 |
| -24.3% | -27.1% | -8.5% | 5.2% | 8.7% | 8.1% | |
| Commercial (mainly retail) | 54.1 | 39.5 | 43.6 | 47.2 | 49.0 | 52.9 |
| -37.3% | -27.0% | 10.4% | 8.2% | 4.0% | 7.8% | |
| Institutional | 187.4 | 161.1 | 154.7 | 155.7 | 157.0 | 167.4 |
| -3.4% | -14.0% | -4.0% | 0.7% | 0.8% | 6.7% | |
| Health Care | 44.8 | 39.3 | 39.7 | 40.7 | 41.9 | 45.5 |
| -4.4% | -12.3% | 0.9% | 2.4% | 3.0% | 8.6% | |
| Education | 103.2 | 88.4 | 84.3 | 85.0 | 85.4 | 90.5 |
| -1.6% | -14.3% | -4.6% | 0.8% | 0.6% | 6.0% | |
| Religious | 6.2 | 5.3 | 4.2 | 3.9 | 3.8 | 4.0 |
| -14.3% | -14.6% | -20.1% | -7.8% | -3.0% | 4.9% | |
| Public Safety | 13.8 | 11.2 | 10.2 | 10.1 | 9.5 | 9.8 |
| 5.4% | -19.1% | -8.2% | -1.1% | -6.6% | 3.6% | |
| Amusement/Recreation | 19.4 | 16.9 | 16.2 | 16.1 | 16.4 | 17.6 |
| -11.1% | -12.7% | -4.5% | -0.8% | 2.3% | 7.3% | |
| Manufacturing | 56.8 | 40.4 | 41.4 | 48.5 | 53.0 | 60.5 |
| 6.8% | -29.0% | 2.6% | 17.2% | 9.3% | 14.0% | |
| Total (1) | 375.7 | 290.4 | 283.1 | 298.9 | 311.1 | 337.2 |
| -14.2% | -22.7% | -2.5% | 5.6% | 4.1% | 8.4% | |
(1) Total may not equal the sum of its components due to rounding. | ||||||
Read more forecasts from Reed Construction Data:
Construction Spending Ends 2012 on a High Note
Heavy Engineering Construction Ends the Year on a Sour Note
Continued Recovery in Housing Sends New Residential Construction Spending Higher in December
