Jul 3, 201702:42 PMBlog
Non-residential building stagnant in U.S.
A report issued today by U.S. Census Bureau shows not much change in nonresidential construction from April through May, standing at $714.3 billion on a seasonally adjusted basis.
Analysis by industry group Associated Builders and Contractors found just 0.3 percent increase on both a monthly and yearly basis, compared to 2016.
“In May, it was public spending that led the way, including in the highway and street category, which has generally been a source of enormous disappointment since the Fixing America’s Surface Transportation Act became law in late 2015,” according to ABC Chief Economist Anirban Basu.
“Whether the recent uptick in public construction spending is part of an emerging sustained trend or simply statistical anomaly is not clear. What is clear is that overall nonresidential construction spending growth appears to be stalling, with many prospective purchasers of construction services having apparently adopted a wait-and-see attitude.”
Basu does note that the backlog of nonresidential work remains strong and has been rising. Construction employment, too, continues to expand, consistent with the notion that the average contractor has been getting busier.