Construction spending increases

Construction spending rose 0.1% in November 2007. Construction spending is essentially unchanged over the past year, but remains 5% below the peak in construction activity in February 2006, according to an analysis from Reed Construction Data (RCD). But the report should not be interpreted as an end to the long slide in construction activity because construction costs have begun to rise again.

02/01/2008


Construction spending rose 0.1% in November 2007. Construction spending is essentially unchanged over the past year, but remains 5% below the peak in construction activity in February 2006, according to an analysis from Reed Construction Data (RCD).

But the report should not be interpreted as an end to the long slide in construction activity because construction costs have begun to rise again. The construction materials price index jumped an outsized 1.4% in November (month to month), according to the Bureau of Labor Statistics, and construction wages rose an unusually large 1%. It is clear that the real volume of construction activity, measured after inflation, fell again in November.

The RCD forecast for total construction spending remains about the same. Spending will decline 2.3% in 2007, increase 3.8% in 2008 (which will about match cost increases) and then gain 9.3% in 2009, when the housing market is again expanding steadily.

Spending on non-residential construction increased 1.6% in November to a level 21% above a year ago. Construction spending for commercial properties increased only 0.7% in November after rising 21% in the previous year. RCD expects non-residential construction spending to increase 17% in 2007, 12% in 2008 and 8% in 2009, which is still substantial real growth after subtracting project cost increases.





Product of the Year
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
40 Under Forty: Get Recognized
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
MEP Giants Program
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
September 2018
Power boiler control, Product of the Year, power generation,and integration and interoperability
August 2018
MEP Giants, lighting designs, circuit protection, ventilation systems, and more
July 2018
Integrating electrical and HVAC systems, emerging trends in fire, life safety, ASHRAE 90.4
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
click me