Despite a downturn in overall construction activity, private nonresidential construction spending was up 0.8 percent in July – the first increase since March 2009. That, according to the September 1 report by the U.S. Census Bureau. However, on year-over-year basis, private nonresidential construction spending is down 23.7 percent. Total nonresidential construction spending – which includes both privately and publicly financed construction – was down 0.3 percent compared to June and 16.6 percent from a year ago. Total nonresidential construction spending now stands at $554.6 billion, reports the Associated Builders and Contractors Inc.
Six of the 16 nonresidential construction subsectors posting increases in spending for the month including power-related, up 6.4 percent; communication, 4.8 percent higher; and amusement and recreation-related construction, up 4.6 percent. Three subsectors had increases compared to the same time last year including conservation and development, up 12.2 percent; sewage and waste disposal, 9.9 percent higher; and water supply-related construction, up 1.2 percent.
In contrast, 10 subsectors posting decreases from June to July include conservation and development, down 12.9 percent; religious-related, 6.7 percent lower; manufacturing, down 4.9 percent; highway and street, down 2.8 percent; and commercial construction, down 2.8 percent. Those subsectors posting the largest year-over-year decreases were lodging, down 53.7 percent; manufacturing, 34.7 percent lower; and office construction, down 33.6 percent.
Meantime, residential construction spending was down 2.5 percent compared to June, but up 6 percent compared to July 2009. Public nonresidential construction spending was down 1.3 percent for the month and 8.6 percent lower from the same time last year. Overall, total construction spending – which include both residential and nonresidential – was down for the third straight month at 1 percent in July, and is down 10.7 percent from July 2009.
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