US non-residential still strong

By Chris Sleight02 May 2008

The US non-residential construction market grew +12% in the 12 months to the end of March. However, difficult conditions in the residential sector meant construction spending as a whole declined over the year.

Commenting on the latest statistics from the US Census Bureau, Associated General Contractors of America (AGC) chief economist Ken Simonson said, “The housing slump buried the good news by dragging total spending down.”

According to Mr Simonson, outside the housing sector, private investment in construction continues to be strong. “Both private and public non-residential construction are still growing, although public spending is losing speed. Private non-residential spending was up +15% from March 2007, whereas public spending grew +7.2,” he said.

Mr Simonson continued, “I expect a further slowdown in public spending as revenues flatten out or even shrink for highways, schools and other public projects. On the private side, I expect ongoing vigour in spending on power, energy, communications, hospital, higher education and military base realignment-related projects to offset a likely retreat by office and retail construction.

“The biggest challenge for all non-residential construction is runaway materials costs,” he concluded.
Latest News
Alarming rise in construction disputes
New research shows almost 9 out of 10 AEC companies have dealt with a dispute in the past 12 months
Chile’s equipment market worth US$1 billion
A bounce-back from the Covid pandemic and sharply rising global commodity prices saw the Chilean equipment market double in size in 2021
Doosan makes multiple equipment debuts
Visitors at Hillhead 2022 get first look at Doosan’s next-gen mini excavators