WASHINGTON, DC — Nationwide nonresidential building spending was down 0.4% in August, in accordance with an Related Builders and Contractors evaluation of information revealed in the present day by the U.S. Census Bureau. On a seasonally adjusted annualized foundation, nonresidential spending totaled $859.3 billion for the month.
Spending was down on a month-to-month foundation in 10 of 16 nonresidential subcategories. Non-public nonresidential spending was down 0.1%, whereas public nonresidential building spending was down 0.8% in August.
“The disparity between excessive contractor confidence and worrisome macroeconomic outcomes persists,” stated ABC Nationwide Chief Economist Anirban Basu. “In keeping with ABC’s Building Confidence Index and Backlog Indicator, many contractors stay in enlargement mode and count on to expertise rising gross sales and revenue margins going ahead. Many additionally count on their employment ranges to be larger in six months.
“However the nonresidential building information point out that constant spending development stays elusive,” stated Basu. “Given the rising prices of challenge financing and delivering building companies, that isn’t shocking. Arguably, it’s contractor confidence that’s counterintuitive.
“Reconciling robust microeconomic perspective with weak macroeconomic outcomes entails taking a look at segment-specific information,” stated Basu. “Whereas some segments like workplace and lodging proceed to battle within the context of behavioral shifts wrought by the pandemic, different segments are displaying important momentum. That is particularly obvious in sure public building segments like water/sewer, freeway/avenue and flood management.”
Go to abc.org/economics for the Building Backlog Indicator and Building Confidence Index, plus evaluation of spending, employment, job openings, GDP and the Producer Value Index.