Nonresidential construction spending increased 1.6 percent on a monthly basis in October after declining 1.3 percent in September, according to the December 2 release by the U.S. Census Bureau. On a year-over-year basis, nonresidential construction spending is down 0.7 percent through October. Spending totaled $575.563 billion for the month on a seasonally adjusted, annualized basis, according to the report.
“As expected, construction spending was hindered by a combination of elevated uncertainty and delayed procurement resulting from the government shutdown,” says Associated Builders and Contractors chief economist Anirban Basu. “The October data suggest nonresidential construction spending could regain a certain degree of momentum during the months ahead, though the long-anticipated acceleration in spending is unlikely to occur until after the first quarter of 2014.”
Thirteen of 16 nonresidential construction subsectors posted increases in spending in October.
Public safety-related construction spending grew 5.6 percent, but has declined 1.2 percent on a year-over-year basis. Amusement and recreation-related spending was up 1.8 percent on a monthly basis, but is 1 percent lower than the same time last year.
Conservation and development spending was up 6.7 percent for the month, but is down 7.2 percent for the year. Lodging spending grew by 1.2 percent on a monthly basis and is up 17.5 percent on a year-over-year basis.
Religious spending grew 2.2 percent for the month, but is down 12.6 percent compared to the same time last year, according to the report. Education-related construction spending expanded 8.1 percent for the month, but is down 12.6 percent on a year-over-year basis.
Commercial construction spending increased 2.8 percent in October and is up 4.4 percent on a year-over-year basis. Health care-related construction spending was up 1.8 percent for the month but is down 0.6 percent for the year.