Nonresidential construction spending increased 0.1% from September to October and is up 20% compared with October 2022, according to Associated Builders and Contractors.
For public construction, spending increased 0.2% for the month and is up 16.4% year to date. Private nonresidential spending rose 0.1% from September to October and is up 22.4% year to date. Spending was up for the month in eight of the 16 nonresidential subcategories.
“Nonresidential construction spending increased for the 17th consecutive month in October and is now up an even 20% over the past year,” said ABC Chief Economist Anirban Basu. “As has been the case, more than 45% of that year-over-year increase is due to surging construction activity in the manufacturing sector, though infrastructure-related categories like highway and street and sewage and waste disposal have also outperformed.
“Spending in the commercial category, which includes construction of distribution and warehouse space, fell sharply in October,” Basu continued. “This is likely due to a severe slowdown in the freight industry and slowing warehouse-related construction rather than a sudden decline in retail-related construction. Despite weakness in the commercial category and other headwinds like high interest rates and labor shortages, contractors remain optimistic about their sales over the next six months, according to ABC’s Construction Confidence Index.”
