According to US Census Bureau data, September national nonresidential construction spending grew 0.3% marketing the 16th consecutive month of growth. The growth is primarily attributed to publicly financed construction.
Some private categories, including power, commercial, amusement, and recreation saw month-over-month increases, however, publicly financed construction accounted for more than 72% of September’s rise. Federal infrastructure spending and high financing costs for private construction are expected to continue the publicly financed construction trend.
Commercial construction, including warehouse and retail projects, increased 0.7% in September; investment in power, oil, and gas projects climbed 0.9%; and spending on education projects increased 1.8%. However, manufacturing-related spending dipped 0.4%, and highway & street spending also declined by 0.1%.
Despite the September decline in manufacturing construction, 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.
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