Nonresidential construction spending increased 0.4% from July to August and is up 17.6% compared with August 2022, according to Associated Builders and Contractors.
For public construction, spending increased 0.4% for the month and is up 14.4% year to date. Private nonresidential spending rose 0.3% from July to August and is up 19.7% year to date. Spending was up for the month in 12 of the 16 nonresidential subcategories.
“Aggregate nonresidential construction spending expanded at a respectable rate in August,” said ABC Chief Economist Anirban Basu. “But manufacturing-related and public sector projects accounted for more than 100% of the monthly increase. Privately financed commercial- and educational-related construction spending declined by almost 1% at least partially due to elevated borrowing costs.
“Despite high interest rates and ongoing weakness in certain segments like office and retail, contractors remain relatively upbeat,” Basu continued. “Despite still-high materials costs and ongoing labor shortages, a plurality of contractors expects their profit margins to increase over the next six months, according to ABC’s Construction Confidence Index.”
