WASHINGTON, DC — Nationwide nonresidential development spending elevated 0.4% in February, based on an Related Builders and Contractors evaluation of knowledge printed at the moment by the US Census Bureau. On a seasonally adjusted annualized foundation, nonresidential spending totaled $982.2 billion for the month.
Spending declined on a month-to-month foundation in 9 of the 16 nonresidential subcategories. Non-public nonresidential spending was up 0.7%, whereas public nonresidential development spending was down 0.2% in February.
“Nonresidential development spending elevated for the eighth time up to now 9 months in February,” mentioned ABC Chief Economist Anirban Basu. “Importantly, nearly the entire nonresidential sector’s momentum is attributable to manufacturing-related development, which accounted for practically 35% of the year-over-year progress in spending. Excluding the manufacturing phase, spending within the different 15 nonresidential segments collectively declined in February.
“Whereas the manufacturing phase ought to proceed to see elevated ranges of funding, tightening credit score situations will probably hinder nonresidential development momentum within the close to time period,” mentioned Basu. “Contractors preserve a wholesome stage of backlog, based on ABC’s Building Backlog Indicator, however a dismal financial outlook and problem securing financing are potential headwinds for the business for the remainder of 2023.”
Go to abc.org/economics for the Building Backlog Indicator and Building Confidence Index, plus evaluation of spending, employment, job openings and the Producer Worth Index.