{"id":12619,"date":"2023-02-02T23:06:33","date_gmt":"2023-02-03T07:06:33","guid":{"rendered":"https:\/\/essential.construction\/news\/nonresidential-spending-falls-0-5-construction-dive\/"},"modified":"2023-02-02T23:06:33","modified_gmt":"2023-02-03T07:06:33","slug":"nonresidential-spending-falls-0-5-construction-dive","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/nonresidential-spending-falls-0-5-construction-dive\/","title":{"rendered":"Nonresidential spending falls 0.5% | Construction Dive"},"content":{"rendered":"<p> <a href=\"https:\/\/essential.construction\/files\/membership-default-internal\/\" class=\"memberhide\"><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/01\/20220718_175041000_iOS.jpg\" alt=\"-\"><\/a><br\/><br \/>\n<\/p>\n<div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>Nonresidential construction spending ended on a down note in 2022, falling 0.5% in December, to a seasonally adjusted annualized basis of $943.5 billion, according to Associated Builders and Contractors. The drop ended a six-month period of increases.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The dip came as spending fell in 10 of 16 nonresidential spending categories. Broadly, privately funded nonresidential spending was also down 0.5%, while public spending pulled back 0.4%.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cWhile contractors remain reasonably confident, there is reason for caution,\u201d said Anirban Basu, ABC\u2019s chief economist, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/entryid\/19768\/abc-nonresidential-construction-spending-dips-05-in-december\" target=\"_blank\"><span><span><span><span><span><span><span><span>in a release<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. \u201cWorker shortages remain a challenge for contractors, and elevated interest rates have increased borrowing costs, making certain projects unfeasible at the margins while also driving the economy toward a potential recession this year.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\">Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>The dip came even as <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/2023-begins-with-positive-momentum-for-construction\/641186\/\" target=\"_blank\">overall building starts<\/a> ended the year with the first positive gain in December since 2017.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>December\u2019s dip wasn\u2019t all bad news, however.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Basu noted that for the year, 2022 nonresidential construction spending increased 13.8%, a rate that was higher than both overall inflation (6.4%) and materials price inflation (7.6%).\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"inside_story\">\n<div class=\"figure_content\">\n<div><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Optional Caption<\/p>\n<p>Courtesy of Associated Builders and Contractors<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>More than half of the increase in nonresidential construction over the past year is due to heightened activity in two segments: manufacturing, as megaprojects begin across the nation, and commercial, a category that includes warehouse- and distribution-related construction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Still, the latest numbers also provide more evidence that the economy could slow in 2023, and that nonresidential construction wouldn\u2019t be immune to a contraction.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A chart shows nonresidential spending activity over time.\" data-imagemodel=\"127615\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/02\/bG9jYWw6Ly8vZGl2ZWltYWdlL1NjcmVlbnNob3RfMjAyMy0wMi0wMV9hdF8xMS40OC41OF9BTS5wbmc.png\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Optional Caption<\/p>\n<p>Courtesy of Associated Builders and Contractors<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>Indeed, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/recession-is-underway-for-home-builders\/641708\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>a recession in the housing market<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> is already underway. National Association of Home Builders Chief Economist Rob Dietz said this week at the International Builders\u2019 Show in Las Vegas he expects the sector\u2019s malaise to spread to the rest of the economy.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe\u2019ve never had a period where home prices have declined and there has not been a recession,\u201d he said. \u201cI think the rest of the economy will feel it in 2023 via slowing economic output and rising job losses.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5143531171910809\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- News - Bottom -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-5143531171910809\"\r\n     data-ad-slot=\"8320848692\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/nonresidential-construction-spending-fell-in-december\/641785\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dive Brief: Nonresidential construction spending ended on a down note in 2022, falling 0.5% in December, to a seasonally adjusted &#8230; <a title=\"Nonresidential spending falls 0.5% | Construction Dive\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/nonresidential-spending-falls-0-5-construction-dive\/\" aria-label=\"Read more about Nonresidential spending falls 0.5% | Construction Dive\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-12619","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/12619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=12619"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/12619\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=12619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=12619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=12619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}