Nonresidential construction spending slipped 1 percent in September but has still expanded 4.2 percent on a year-over-year basis, according to the U.S. Census Bureau.

Spending for the month totaled $596.1 billion on a seasonally adjusted, annualized basis.

“September’s drop in nonresidential construction spending is disappointing given the growing momentum in the broader economy and the generally positive signals being sent by industry-specific leading economic indicators,” says Associated Builders and Contractors (ABC) chief economist Anirban Basu. “Based on a combination of these leading indicators—including ABC’s own Construction Backlog Indicator and the Architecture Billings Index—and the anticipated performance of the U.S. economy, nonresidential construction spending should re-establish an upward trajectory on a seasonally adjusted basis going forward.”

Only five of 16 nonresidential construction subsectors posted increases in spending in September on a monthly basis, including office-related construction, lodging construction, conservation and development-related construction, commercial construction and the water supply category.