Posted on July - 11 - 2011
Nonresidential Building Construction Spending Declined 0.5% in May
Nonresidential construction spending fell 0.5% in May but the upward spike in March, as expected, has been more than reversed by delayed starts during the period of weak economic growth in the early spring. Institutional spending fell 1.5% as the stimulus funded came to an end and public budget cutbacks accelerated. Spending for “for lease” buildings rose 0.5% in response to modest rises in rental and occupancy rates. The value of private commercial starts has steadied well above the cyclical low level and design work in progress continues to expand.
Nonresidential building construction spending declined 23.4% in 2010 but has fallen only 1.0% further through May. No more significant declines are expected although the full year 2011 will be down 8.6% from the full year 2010. A 10.4% rise is forecast for 2012.
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