Nonresidential construction spending increased 0.3% from August to September and is up 19% compared with September 2022, according to Associated Builders and Contractors.
For public construction, spending increased 0.5% for the month and is up 15.7% year-to-date. Private nonresidential spending rose 0.1% from August to September and is up 21.3% year-to-date. Spending was down for the month in nine of the 16 nonresidential subcategories.
“Nonresidential construction spending increased for the 16th straight month in September,” said ABC Chief Economist Anirban Basu. “While some private categories, including power, commercial and amusement and recreation saw healthy month-over-month increases, publicly financed construction accounted for more than 72% of September’s rise. Given increased federal infrastructure spending and exorbitant financing costs for private construction, that dynamic should remain firmly in place over the coming months.”
“Despite a small decrease in spending in September, manufacturing construction remains the nonresidential sector’s outperformer,” Basu continued. “Spending in the category is up 62% over the past year and accounts for nearly 43% of the year-over-year increase in nonresidential construction put in place. With several industrial megaprojects ongoing, spending in the manufacturing segment will remain elevated for several quarters.”
