Nonresidential construction spending increased 0.5% from August to September and is up 9.2% compared with September 2021, according to www.abc.org.
For public construction, spending decreased 0.3% for the month and is up 7.2% year-to-date. Private nonresidential spending rose 1% from August to September and is up 10.5% year-to-date. Spending was down for the month in 11 of the 16 nonresidential subcategories.
“The disconnect between contractor confidence, which remains elevated according to ABC’s Construction Confidence Index, and nonresidential construction spending continues,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While nonresidential construction spending is below February 2020 levels, many contractors report operating at capacity. This has much to do with worker and equipment shortages.
“Many projects under construction in America began prior to the rapid increase in borrowing costs that started earlier this year,” Basu continued. “With interest rates on the rise and the economy expected to slow, nonresidential spending will likely decline further, at least in segments vulnerable to economic downturns. Contractors that focus on public construction work stand to be in far better shape given recent federal legislation and excess pandemic relief funds waiting to be spent by many state and local governments.”