PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free e-book! Overcoating bridges and other structures.

Coatings Industry News

Main News Page


US Construction Spending Hits 10-Year High

Tuesday, January 10, 2017

More items for Program/Project Management
More items from North America

Comment | More

Bolstered by street and highway work, nonresidential construction was up nearly 5 percent in November, helping to move U.S. construction spending to numbers not seen in a decade, new federal figures say.

The U.S. Commerce Department reported Tuesday (Jan. 3) that construction spending reached $1.18 trillion in November 2016—the highest level seen since April 2006. The increase is a 0.9 percent jump from October and up 4.1 percent from the year before.

Road work
© iStock.com / Jens_Lambert_Photography

Street and highway construction spending was up 10.5 percent in November 2016 as compared with November 2015, according to federal data.

In a statement, officials with the Associated General Contractors of America say the new data indicates that the 2017 outlook for construction is favorable, cautioning that demand will vary for different types of construction projects.

“Most contractors expect to remain busy in 2017, as well, although there will be a shift in the types of projects that are most active,” said Ken Simonson, the association’s chief economist. “Office construction is especially hot, while manufacturing and apartment construction are slowing sharply, and public investment is a major question mark.”

Anirban Basu, chief economist for the Associated Builders and Contractors Inc., noted, “[The] strong spending report contributed to a bright short-term outlook for the commercial and industrial construction sectors," adding that momentum in the nonresidential construction sector should build further.

By the Numbers

Private nonresidential construction spending jumped 0.9 percent in November and 6.4 percent over the last 12 months. The largest nonresidential segment was power construction (oil and gas pipelines) which gained 0.5 percent for the month and 1.5 percent for the year.

Commercial (retail, warehouse and farm) construction rose 0.3 percent in November and 12 percent year-over-year.

Manufacturing construction dipped 1.1 percent for the month and is down 8 percent from 2015. Private office construction grew 1.9 percent for the month and a whopping 31 percent compared with November 2015, reaching an all-time high, reports AGC.

Public construction spending grew 0.8 percent in November and 2.6 percent from the November 2015 rate. Highway and street construction saw a considerable increase, up 10.5 percent from November 2015, but other transportation spending was down 8.5 percent in the same period.

chart
ABC

Nonresidential construction spending is up on a year-over-year basis, and momentum should build further, according to ABC's chief economist.

Simonson cautioned that federal funds for infrastructure “remain a weak point and a number of states are facing new fiscal challenges that may jeopardize investment in infrastructure and public universities.”

Private residential construction spending increased 1.0 percent between October and November and rose 3.0 percent over the past year, according to the AGC’s analysis of the federal data.

Single-family spending increased 1.8 percent for the month, but decreased 0.9 percent from a year earlier.

Investment on multifamily residential construction dipped 2.7 percent for the month but was 11 percent above levels seen in November 2015.

The U.S. construction market is a major driver of future coatings demand, according to the American Coatings Association. The association offered this breakdown of the latest spending report.

   

Tagged categories: Business conditions; Construction; Market; Office Buildings; Oil and Gas; Public Buildings; Roads/Highways; Spending

Comment Join the Conversation:

Sign in to our community to add your comments.

Industrial Vacuum Equipment Corp.
Hurricane Vacuums
& Dust Collectors

Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com


SAFE Systems, Inc.
Portable Dust Collectors for Tough Environments

Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.


Jotun Paints Inc.
Jotachar JF750 - The Time Saving Solution

The only mesh free solution for jet fire scenarios. Jotachar saves installation time and material costs - the next generation of epoxy passive fire protection.


W Abrasives
Steel Abrasives from
W Abrasives

As the global leader in steel abrasives, W Abrasives material is the efficient and eco-friendly solution blasting with you to reach the perfect profile.


DeFelsko Corporation
PosiTector SST Soluble Salt Tester

Measures the concentration of soluble salts on metal surfaces. Use with all Bresle patch types including the reusable, adhesive-free PosiPatch.


KTA-Tator, Inc. - Corporate Office
KTA Analyzes
Coating Failures

• Field Diagnosis
• Lab Diagnosis
• Determination of Cause
• Recommendations
www.kta.com
Call 1-800-245-6379


Termarust Technologies
Termarust (HR CSA) Chemically Stops
Active Corrosion

Arch truss treated with Termarust's (HR CSA) in 2003. This steel arch bridge is rust free on all surfaces including the crevice corroded joints and connections.


Tnemec Company, Inc.
Online Coating Courses from Tnemec

For decades, Tnemec has offered its expertise to clients presenting face-to-face coatings courses. Now, these presentations are available to anyone for CEUs at Tnemec University.


Carboline Company
Carboline is pouring with opportunities

We are proud of our exceptional products and services, and believe that people are our greatest asset. Come grow with us!


Axxiom Manufacturing
The Undisputed
Industry Leader.

Proven Innovation. Job Performance. Industry Training. Workplace Safety. Only Schmidt® abrasive blast equipment by Axxiom Manufacturing delivers it all!

 
 
 

Technology Publishing Co., 2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us