November 3, 2008

Private Nonresidential Construction Bounces Back Slightly in September
Summary
After two months of decline, private nonresidential construction spending increased (1.3 percent) in September compared to August, according to the Nov. 8 report by the U.S. Census Bureau. Private nonresidential construction spending hit $415.2 billion in September. Overall, total nonresidential construction spending topped off at $715.6 billion in September 2008, or an 11.4 percent increase from same time last year (see graphic below).
Of the 16 subsectors that comprise total nonresidential construction, 11 produced year-over-year gains, with manufacturing (up 54 percent), lodging (up 26.1 percent) and power (up 25.9 percent). Subsectors that reported the largest monthly increases were manufacturing (up 5.2 percent) and religious construction (up 2 percent) compared to August.
Those nonresidential construction subsectors reporting decreases in spending year-over-year include communication (down 17.1 percent), conservation and development (down 13.3 percent), religious construction (down 11.6 percent) and commercial construction (down 11.6 percent). Six subsectors reported decreases in construction spending from last month with conservation and development (down 17.3 percent) and commercial construction (down 2.9 percent) posting the biggest losses.
Public nonresidential construction was down 1.3 percent in September compared to the previous month, but still up 3.8 percent year-over-year. Residential private construction is back down, decreasing 1.3 percent compared to August and down 27.7 percent year-over-year. Overall, total construction spending is down 0.3 percent since August, and 6.6 percent since September 2007.
What This Means
Posted by: Eric Colburn
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