Nonresidential building construction spending dropped 1.2% at a seasonally adjusted (SA) rate in November after rising 0.5% in October. But not seasonally adjusted (NSA) year-to-date spending was 6.0% higher than the same period in 2011.
“For lease” private projects spending were down 1.1% (SA) in November after bounding up 1.7% in October. Year-to-date for lease spending increased 8.4% over 2011. Lodging construction spending fell 1.7% in November after soaring 5.0% higher in October. Office construction spending took a bigger hit in November, down 2.2%, after increasing 0.7% in October. Retail construction spending slipped 0.2% following a healthy 1.6% advance in October. On a year-to-date basis through November, lodging spending increased 25.5%, office construction spending increased 4.0%, and retail construction spending increased 8.5% from 2011.
Construction spending for institutional projects in November sank 1.2% after inching up 0.3% in October. On a year-to-date
basis, spending was up 1.1% from 2011. All the categories in this group were down in November, but all were higher than in 2011 on a year-to-date basis except for religious construction spending (-8.4%) and amusement and recreation construction spending (-0.3%).
Manufacturing construction spending fell for the second month in a row, down 1.0% in November and down 1.3% in October. Despite these recent declines, year-to-date spending was up 19.2% from 2011.
U.S. Nonresidential Construction | ||||||||
| Monthly Figures (1) (latest actual values) |
3-Month Moving Average | Year-to-Date (NSA) | ||||||
| Sep-12 | Oct-12 | Nov-12 | Sep-12 | Oct-12 | Nov-12 | Jan-11 to Sep-11 |
Jan-12 to Nov-12 |
|
| For Lease | 94.7 | 96.3 | 95.2 | 94.9 | 95.8 | 95.4 | 80.0 | 86.7 |
| Month-over-Month % Change |
-1.7% | 1.7% | -1.1% | 0.3% | 0.9% | -0.4% | ||
| Year-over-year % Change (NSA) |
5.0% | 9.8% | 6.5% | -2.8% | 8.4% | |||
| Lodging | 11.1 | 11.6 | 11.4 | 11.4 | 11.4 | 11.4 | 8.0 | 10.1 |
| -4.3% | 5.0% | -1.7% | -0.9% | 0.2% | -0.4% | |||
| 23.5% | 30.0% | 21.8% | -25.3% | 25.5% | ||||
| Office | 36.2 | 36.5 | 35.7 | 36.5 | 36.7 | 36.2 | 31.9 | 33.2 |
| -2.8% | 0.7% | -2.2% | 0.3% | 0.6% | -1.4% | |||
| -0.3% | 7.4% | 3.3% | -9.0% | 4.0% | ||||
| Commercial (mainly retail) |
47.4 | 48.2 | 48.1 | 47.1 | 47.7 | 47.9 | 40.1 | 43.5 |
| -0.2% | 1.6% | -0.2% | 0.6% | 1.3% | 0.4% | |||
| 5.9% | 7.7% | 5.8% | 9.7% | 8.5% | ||||
| Institutional | 154.0 | 154.5 | 152.6 | 156.2 | 155.4 | 153.7 | 142.6 | 144.2 |
| -2.4% | 0.3% | -1.2% | -0.8% | -0.5% | -1.1% | |||
| -3.6% | -0.2% | -1.2% | -4.6% | 1.1% | ||||
| Health Care | 39.2 | 40.1 | 39.9 | 40.9 | 40.6 | 39.7 | 36.4 | 37.3 |
| -8.0% | 2.3% | -0.5% | -1.5% | -0.7% | -2.2% | |||
| -3.5% | 3.2% | -1.1% | 0.8% | 2.5% | ||||
| Education | 84.5 | 84.1 | 83.8 | 85.3 | 84.6 | 84.1 | 78.1 | 79.1 |
| -1.0% | -0.5% | -0.3% | -1.0% | -0.7% | -0.6% | |||
| -3.7% | -1.8% | -1.3% | -5.2% | 1.2% | ||||
| Religious | 3.7 | 3.7 | 3.5 | 3.8 | 3.8 | 3.7 | 3.9 | 3.6 |
| -2.9% | 0.7% | -6.0% | -1.2% | -1.6% | -2.7% | |||
| -11.1% | -6.4% | -11.2% | -20.2% | -8.4% | ||||
| Public Safety | 9.9 | 10.0 | 9.8 | 10.0 | 10.0 | 9.9 | 9.4 | 9.4 |
| -1.9% | 1.4% | -2.6% | -0.8% | 0.1% | -1.1% | |||
| -4.8% | -0.2% | -7.6% | -9.7% | 0.8% | ||||
| Amusement/ Recreation |
16.7 | 16.6 | 15.6 | 16.2 | 16.4 | 16.3 | 14.9 | 14.8 |
| 4.2% | -0.7% | -5.7% | 1.9% | 1.3% | -0.8% | |||
| 2.8% | 5.3% | -4.3% | -5.2% | -0.3% | ||||
| Manufacturing | 49.1 | 48.5 | 48.0 | 48.2 | 48.5 | 48.5 | 37.0 | 44.1 |
| 2.3% | -1.3% | -1.0% | -0.1% | 0.6% | 0.0% | |||
| 4.0% | 6.1% | 3.5% | -1.5% | 19.2% | ||||
| Total (2) | 297.8 | 299.3 | 295.8 | 299.3 | 299.7 | 297.6 | 259.6 | 275.1 |
| -1.4% | 0.5% | -1.2% | -0.3% | 0.1% | -0.7% | |||
| 0.4% | 4.1% | 1.4% | -3.6% | 6.0% | ||||
(1) Monthly figures are seasonally adjusted at annual rates (SAAR figures). | ||||||||
The Forecast
Nonresidential construction spending is estimated to increase 5.3% in 2012, and is forecasted to rise 3.5% in 2013 and to rise 8.4% in 2014.
U.S. Nonresidential Construction | ||||||
| Actual | Forecast | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |
| For Lease | 131.5 | 88.9 | 87.1 | 94.2 | 100.3 | 108.5 |
| Year-over-year % Change | -31.0% | -32.4% | -2.1% | 8.1% | 6.5% | 8.2% |
| Lodging | 25.5 | 11.6 | 8.9 | 11.1 | 12.3 | 13.6 |
| -28.8% | -54.4% | -23.7% | 24.6% | 11.6% | 10.3% | |
| Office | 51.9 | 37.9 | 34.6 | 36.0 | 38.0 | 41.0 |
| -24.3% | -27.1% | -8.5% | 3.8% | 5.6% | 8.1% | |
| Commercial (mainly retail) | 54.1 | 39.5 | 43.6 | 47.1 | 50.0 | 53.8 |
| -37.3% | -27.0% | 10.4% | 8.1% | 6.0% | 7.8% | |
| Institutional | 187.4 | 161.1 | 154.7 | 155.8 | 157.0 | 167.4 |
| -3.4% | -14.0% | -4.0% | 0.7% | 0.7% | 6.7% | |
| Health Care | 44.8 | 39.3 | 39.7 | 40.6 | 41.8 | 45.4 |
| -4.4% | -12.3% | 0.9% | 2.3% | 2.9% | 8.7% | |
| Education | 103.2 | 88.4 | 84.3 | 85.0 | 85.0 | 90.1 |
| -1.6% | -14.3% | -4.6% | 0.9% | 0.0% | 6.0% | |
| Religious | 6.2 | 5.3 | 4.2 | 3.9 | 3.6 | 3.8 |
| -14.3% | -14.6% | -20.1% | -8.8% | -5.4% | 4.9% | |
| Public Safety | 13.8 | 11.2 | 10.2 | 10.2 | 9.9 | 10.3 |
| 5.4% | -19.1% | -8.2% | -0.1% | -3.1% | 3.6% | |
| Amusement/Recreation | 19.4 | 16.9 | 16.2 | 16.1 | 16.6 | 17.8 |
| -11.1% | -12.7% | -4.5% | -0.7% | 3.1% | 7.3% | |
| Manufacturing | 56.8 | 40.4 | 41.4 | 48.2 | 51.3 | 58.5 |
| 6.8% | -29.0% | 2.6% | 16.5% | 6.5% | 14.0% | |
| Total (1) | 375.7 | 290.4 | 283.1 | 298.2 | 308.6 | 334.4 |
| -14.2% | -22.7% | -2.5% | 5.3% | 3.5% | 8.4% | |
(1) Total may not equal the sum of its components due to rounding. | ||||||
Read more forecasts from Reed Construction Data:
Construction Spending Slips in November
Heavy Engineering Construction Spending Held Steady in November
New Residential Construction Spending Rises at a Slower Pace in November
