Association of the Wall and Ceiling Industry Logo

Nonresidential Construction Spending Falls in April


National nonresidential construction spending was down 0.4% in April, according to an Associated Builders and Contractors analysis of data published June 1 by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $844.4 billion for the month. Despite the monthly setback, nonresidential construction spending is up 6.6% from a year ago.

    

Spending was down on a monthly basis in 12 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.2%, while public nonresidential construction spending was down 0.7% in April. Spending in the residential category retained momentum in April, rising 0.9% for the month and 18.2% since April 2021.

    

“Despite upbeat contractor sentiment, nonresidential construction spending has been sliding during recent months,” said ABC Chief Economist Anirban Basu. “The situation is even worse given that construction spending is measured in nominal terms, and therefore does not account for rapidly rising materials prices and compensation costs that have, according to ABC’s Construction Confidence Index, put downward pressure on profit margins.

    

“In spite of the overall decline in nonresidential construction spending, there are reasons to remain upbeat,” said Basu. “A number of segments hammered by the pandemic showed signs of life in April, with spending in both the lodging and amusement/recreation categories increasing on a monthly basis. Construction related to manufacturing also continues to rise as suppliers desperately strive to keep up with demand and reshoring momentum persists.”

Browse Similar Articles

You May Also Like

The U.S. Department of Labor announced a final rule clarifying the rights of employees to authorize a representative to accompany an Occupational Safety and Health Administration compliance officer during an inspection of
New research has ranked the United States’ most populated industries and estimated what their pay could look like in 2033, in line with inflation, and the results are surprising.
AWCI's Construction Dimensions cover

Renew or Subscribe Today!