National nonresidential construction spending increased 0.1 percent in September, 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 half of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1 percent, while public nonresidential construction spending was up 0.4 percent in September.
“Construction spending inched higher in September, with growth fueled by ongoing infrastructure investment,” says ABC chief economist Anirban Basu. “Spending accelerated in several publicly funded segments in September including highway and street, sewage and waste disposal and water supply. The privately funded nonresidential construction segment didn’t perform as well for the month, with spending in that segment contracting for the second time in the past three months.
“Despite September’s decline, private nonresidential construction spending remains less than 1 percent below the all-time high established in June,” says Basu. “Given ongoing manufacturing mega-projects and healthy backlog levels, according to ABC’s Construction Backlog Indicator, the nonresidential segment should hold up well as the industry waits for lower borrowing costs and looser lending standards to arrive.”
