Construction spending fell 0.6% from October 2020 to November 2020 and is down 4.7% compared with November 2019, according to www.abc.org.
For public construction, spending decreased 0.2% for the month and 2.6% year-to-date. Private nonresidential spending fell 0.8% October 2020 to November 2020 and is down 9.5% year-to-date.
“The near-term nonresidential construction spending outlook is generally not positive,” Basu said. “While there will be certain construction segments that remain active, including data centers, fulfillment centers and certain health care facilities, commercial construction is positioned to be weak for the next several quarters. This is reflected in ABC’s Construction Backlog Indicator, which in November reached its lowest level since the beginning of 2011.
“Many public segments have also experienced declines in spending in recent months,” Basu continued. “The good news is that public construction may receive a substantial boost from post-inauguration stimulus. Infrastructure investment often produces additional opportunities for profitable private development. Suburban commercial developers may also take heart in America’s ongoing residential construction boom, with residential construction spending up more than 16% on a year-over-year basis, as interest in homeownership surges.”
