Nonresidential construction spending retains momentum
For the first half of the year, nonresidential construction spending is up 11.5 percent on a year-over-year basis, according to a recent report by the U.S. Census Bureau. Nonresidential construction spending totaled $686.9 billion on a seasonally adjusted, annualized basis for the month of June and increased 9.8 percent during the year's first half.
“Today's release represents the largest year-over-year growth during a calendar year's first six months since the Census Bureau began tracking construction spending in 2002 and serves as further proof of the recovery for nonresidential construction,” Associated Builders and Contractors Chief Economist Anirban Basu said in a statement. “Despite the lack of growth on a monthly basis in June, along with the overall economy's lukewarm growth, most contractors are markedly busier than they were a year ago.”
According to Basu, half of the 16 nonresidential construction sectors experienced growth in June. Some of those sectors are listed below:
· Lodging-related construction spending was up 3.9 percent on a monthly basis and 42.2 percent on a year-over-year basis.
· Highway and street-related construction spending expanded 1.3 percent in June and is up 14.8 percent compared to the same time last year.
· Amusement and recreation-related construction spending was up 10.2 percent on a monthly basis and is up 39.2 percent from the same time last year.
· Communication-related construction spending fell 6.8 percent for the month, but is up 13.4 percent compared to June 2014.
· Construction spending in the transportation category grew 2.3 percent on a monthly basis and has expanded 9.6 percent on an annual basis.