Nonresidential construction spending down in December
Total nonresidential construction spending was down 1.6 percent in December from November, and down 6.4 percent from December 2009, according to U.S. Census Bureau information released by Associated Builders and Contractors Inc. (ABC).
Nonresidential construction spending totaled $552.2 billion in December.
ABC economist Anirban Basu said in a press release that the decrease can be attributed in part to bad December weather, and that there is evidence of federal stimulus money starting to leave the system.
Private nonresidential spending fell 0.5 percent in December following three straight months of increases, and is down 12.3 percent from the same time last year.
“Prior to December, private nonresidential spending was rising in America,” Basu said in the release. “However, the question becomes whether the data indicate an end to a short period of recovery, or whether the recovery was temporarily halted by snow and cold temperatures.”
Thirteen of 16 construction subsectors experienced monthly decreases in spending, including conservation and development, which dropped 17.1 percent.
Public nonresidential spending was down for a second consecutive month, but declined only 0.5 percent from the same month a year earlier.