National nonresidential construction spending increased 0.1 percent in August, according to an Associated Builders and Contractors (ABC) analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.
Spending was up on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1 percent, while public nonresidential construction spending was up 0.3 percent in August.
“Nonresidential construction spending inched higher in August, and that’s almost entirely due to ongoing infrastructure investments,” says ABC chief economist Anirban Basu. “Public spending accounted for all of the nonresidential segment’s monthly increase and has risen nearly 8 percent over the past year, significantly outpacing privately financed nonresidential construction activity. As a result of ongoing weakness in certain private sub-segments, ABC’s Construction Backlog Indicator has fallen by a full month over the past year. While falling interest rates will eventually serve as a tailwind for the industry, it may be several quarters before privately financed segments see any substantial relief.”
