Nonresidential Construction Spending Increased For 17th Consecutive Month

National nonresidential construction spending ticked up 0.1% in October to a seasonally adjusted annualized basis of $1.1 trillion, according to a new Associated Builders and Contractors analysis.Manufacturing and infrastructure investments fueled a 0.1% uptick in October, but warehouse and distribution center spending declined.

The small gain marks the 17th consecutive month of growth, primarily due to activity in both the manufacturing sector and infrastructure-related projects, said Anirban Basu, ABC chief economist. But spending in the commercial segment, which includes distribution centers and warehouses, fell sharply, he said. The sector fell 1.5%, the largest decline of any category.

“Nonresidential construction spending increased for the 17th consecutive month in October and is now up an even 20% over the past year,” said Basu. “Despite weakness in the commercial category and other headwinds like high interest rates and labor shortages, contractors remain optimistic about their sales over the next six months.” More information is available here.