Construction Spending Ends 2015 on Mixed Note

Words: Dan KamysAGC of America (The Associated General Contractors of America) released the following news on Monday, Feb. 1, 2016: U.S. construction spending inched up in December from a month earlier and increased solidly over the year, but the major components showed divergent trends, according to an analysis by the Associated General Contractors of America. Association officials cautioned that slowdown in spending in a number of key, private nonresidential categories could reflect broader financial uncertainty and undermine the sector's recovery. "Home and apartment construction continued growing strongly while public construction, particularly for highways, has also advanced," said Ken Simonson, the association's chief economist. "But spending on most private nonresidential categories has stalled or turned negative in the past several months. Contractors still say they are very busy now but uncertainty over the economy may mean new projects dry up." Construction spending in December totaled $1.117 trillion at a seasonally adjusted annual rate, less than 0.1 percent higher than the downwardly revised November total and 8.2 percent higher than in December 2014, Simonson said. For 2015 as a whole, spending totaled $1.097 trillion, an increase of 10.5 percent from 2014 and the highest annual total since 2007 before adjusting for inflation. But the December rate was only 0.2 percent higher than in July, indicating construction leveled off in the second half of 2015, he added. Private residential spending increased 0.9 percent for the month and 8.1 percent compared to December 2014. Spending on multifamily residential construction jumped 2.7 percent for the month and 12 percent higher year-over-year, while single-family spending rose 1.0 percent and 8.7 percent, respectively. Private nonresidential construction spending fell 2.1 percent for the month but rose 11.8 percent from a year earlier. Simonson observed that the total slumped to the lowest rate since April 2015 although full-year spending exceeded 2014 totals for every category except power and energy construction. Public construction spending increased 1.9 percent from a month before and 3.9 percent from 12 months earlier. Of the two biggest public categories, highway and street construction soared 9.4 percent for the month and 12 percent year-over-year, while spending on educational facilities dipped 0.5 percent for the month but posted a 9.4 percent year-over-year gain. Association officials said that the increase in public sector construction spending most likely reflects recently enacted federal transportation and spending measures. They worried, however, that the economic benefits of the increases public investments could be undermined if private sector demand for nonresidential construction begins to lag. "Instead of boosting the sector's recovery, these new public investments may end up being the difference that keeps many firms in growth mode," said Stephen E. Sandherr, the association's chief executive officer.
Westlake Royal Building Products™ Expands Partnership with Boise Cascade® for Cedar Renditions™ and Versetta Stone® Distribution

Westlake Royal Building Products™ (“Westlake Royal”), a Westlake company (NYSE:WLK), today announced an expanded partnership with Boise Cascade®, a leading manufacturer and distributor of building materials throughout North America. Strengthening Westl

By: Kriss SwintSophia Possidente
Read More
Four Different Types of Natural Stone Used For Masonry

Natural stone has been a staple in masonry for centuries. Before it was used to transform home and landscape designs on residential properties, it was used for historical buildings and some of the most iconic destinations in the world.

By: Noah Dempsey
Read More
Advice to the Beginners

The best advice I could give anyone that is starting a career in masonry is that first and foremost, you must "know" yourself. What do you like to do? What would you like in a working environment? Do you like to be outside? Do you enjoy physical activity

By: Dan Hiltebeitel
About: Featured
Read More
Masonry Safety Inspections

The look of confusion and utter loss on people’s faces when I tell them that I’m a safety inspector for a masonry company is often hilarious.

By: Justus Everett
About: Safety
Read More