While nonresidential construction spending has increased somewhat over the last year, current indicators show that this market is still not robust. According to a recent report from Associated Builders and Contractors Inc. (ABC), a national association of construction-related firms, nonresidential construction spending fell 0.6 percent in July, although year-over-year, total nonresidential construction spending is up 5.7 percent.
The good news is that a sharp slowdown in nonresidential construction spending in the near term is improbable, especially if Congress acts to keep the nation from falling off the approaching fiscal cliff, said ABC’s chief economist Anirban Basu. “However, the outlook remains roughly flat for private nonresidential construction spending in the U.S.”