Newsline / HVAC Light Commercial Market / HVAC Commercial Market

Nonresidential Construction Up

August Spending Totaled $568.6 Billion

ARLINGTON, Va. — Nonresidential construction spending grew 0.2 percent in August and is up 1.3 percent on an annual basis, according to a release from the U.S. Census Bureau reported by the Associated Builders and Contractors (ABC).

August spending totaled $568.6 billion on a seasonally adjusted, annualized basis. The most recent monthly nonresidential construction spending data reveal that both public nonresidential construction spending (up 0.3 percent) and privately financed nonresidential construction projects (up 0.1 percent) saw modest gains in August. On a year-over-year basis, private nonresidential construction spending is up 4.3 percent while public nonresidential construction spending fell 1.9 percent.

“Mimicking the national economy, the nonresidential construction segment is associated with both private sector progress and public sector retrenchment,” said Anirban Basu, chief economist, ABC. “Many economists agree that were it not for statistical headwinds and related uncertainty, the U.S. economy probably would be expanding faster than 3 percent, rather than struggling to achieve 2 percent growth. Similarly, were it not for declines in public construction-dominated categories, such as education and a handful of others, nonresidential construction recovery would have been more forceful during the past year.

“Given lingering fiscal uncertainty emanating from the federal government as well as from many states, public construction is unlikely to rally any time soon. However, private construction is positioned to continue to recover in conjunction with a national economy now in its fifth year of expansion. Much of the strength in the U.S. economy relates to consumer spending. Not coincidentally, construction segments that have been leading the recovery include lodging and commercial.”

Residential construction spending increased 1.3 percent for the month and is up 18.3 percent from the same time last year. Total construction spending — which encompasses both nonresidential and residential spending — was up 0.6 percent for the month and is up 7.1 percent since August 2012.

Publication date: 1/20/2014

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 World Energy Engineering Congress

Scenes from the 2014 World Energy Engineering Congress in Washington, D.C.

Podcasts

NEWSMakers: Howard Weiss
Howard Weiss, executive vice president, HVAC Excellence stopped by The NEWS’ booth at the AHR Expo to discuss HVAC Excellence’s upcoming conference, networking opportunities at large expo’s, and much more. Posted on Feb. 27.
More Podcasts

ACHRNEWS

NEWS 02-23-15 cover

2015 February 23

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

HVAC Trends

The NEWS regularly reports on HVAC industry trends in our weekly issues. What trends do you see?
View Results Poll Archive

HVACR INDUSTRY STORE

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con