Construction Level Spending Remains Steady – NMP Skip to main content

Construction Level Spending Remains Steady

Phil Hall
Oct 04, 2016
Construction spending remained virtually unchanged from July to August at $1.142 billion, according to new data from the Associated General Contractors of America

Construction spending remained virtually unchanged from July to August at $1.142 billion, according to new data from the Associated General Contractors of America. However, on a year-to-date measurement, there was a 4.9 percent increase from January to August 2016 versus the same period last year.

Private residential construction spending dipped by 0.3 percent between July and August, but it was up 1.4 percent on a year-to-date scale. Spending on multifamily residential construction increased by 2.4 percent for the month and was 13.9 percent year-to-date, while single-family spending fell 0.9 percent from July to August and fell 1.5 percent on a year-to-date scale.

Private nonresidential construction spending was down 0.4 percent for the month but was up 4.2 percent year-to-date. Commercial construction—which covers retail, warehouse and farm for this data repot—fell by two percent in August but shot up 6.9 percent year-to-date, while private office construction climbed 2.3 percent for the month and skyrocketed by 28 percent year-to-date.

“While demand for construction remains robust, it is no longer growing like it was earlier this year,” said Ken Simonson, the association’s chief economist. “There is little doubt that new public-sector investments in our aging infrastructure could help reinvigorate demand for construction.”

Separately, the National Association of Home Builders (NAHB) observed October’s designation as Careers in Construction Month by in October highlighting residential construction as a great job opportunity. The NAHB also noted there were plenty of openings: the association’s analysis of Bureau of Labor Statistics data found 214,000 open construction sector jobs in July, the second highest monthly count of unfilled jobs since May 2007.

“Residential construction offers a number of fulfilling career opportunities, from architects and engineers to carpenters, plumbers, electricians, painters and landscapers,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “Yet, our builders are telling us that access to skilled labor remains a top challenge.”

Published
Oct 04, 2016
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021