In a sign of a weak economy and tight credit market, private nonresidential construction spending was unchanged in November, according to the January 4 report by the U.S. Census Bureau. On a year-over-year basis, private nonresidential construction spending has fallen 20.6 percent. Total nonresidential construction spending fell 0.2 percent from October and 10.9 percent from November 2008 to $641.2 billion. (See graph below)Despite the data, six nonresidential construction subsectors experienced spending increases on a monthly basis, including water supply, up 9.7 percent, sewage and waste disposal, up 3.5 percent, and religious construction, up 3.1 percent. Three subsectors were unchanged on a monthly basis. These were construction related to manufacturing, transportation and public safety. Four subsectors posted increases in spending on a year-over-year basis, including conservation and development, up 15.3 percent, transportation, up 10.2 percent, and power-related construction, up 6.2 percent.
Meanwhile, subsectors with the largest monthly decreases in construction spending include highway and street, down 2.9 percent, health care, down 2.6 percent, and amusement and recreation-related construction, down 2.6 percent. The worst year-over-year performers continue to be lodging, down 45.6 percent, commercial construction, down 38.0 percent, and office construction (down 29.4 percent).
Residential construction spending slipped 1.6 percent for the month and 10.9 percent from the same time last year. Overall, total construction spending shrank 0.6 percent on a monthly basis and 13.2 percent on a year-over-year basis.