WASHINGTON, DC — Nationwide nonresidential building spending was up by 0.5% in September, in keeping with an Related Builders and Contractors evaluation of information revealed as we speak by the U.S. Census Bureau. On a seasonally adjusted annualized foundation, nonresidential spending totaled $883.9 billion for the month.
Spending was down on a month-to-month foundation in 11 of the 16 nonresidential subcategories. Non-public nonresidential spending was up 1.0%, whereas public nonresidential building spending was down 0.3% in September.
“The disconnect between contractor confidence, which stays elevated in keeping with ABC’s Development Confidence Index, and nonresidential building spending continues,” mentioned ABC Chief Economist Anirban Basu. “Whereas nonresidential building spending is under February 2020 ranges, many contractors report working at capability. This has a lot to do with employee and gear shortages.
“Many tasks underneath building in America started previous to the fast improve in borrowing prices that began earlier this 12 months,” mentioned Basu. “With rates of interest on the rise and the economic system anticipated to sluggish, nonresidential spending will probably decline additional, no less than in segments weak to financial downturns. Contractors that concentrate on public building work stand to be in much better form given latest federal laws and extra pandemic aid funds ready to be spent by many state and native governments.”
Go to abc.org/economics for the Development Backlog Indicator and Development Confidence Index, plus evaluation of spending, employment, job openings, GDP and the Producer Worth Index.