During the first 10 months of this year, construction spending in the U.S. amounted to $888.1 billion, 10.7% above the $802.3 billion for the same period in 2014. Approximately 2/3 of this amount was spent on non-residential projects—including those privately-funded as well as those funded through government spending.
What categories contributed the most to growth?
Spending on manufacturing facilities—which comprises more than 1/8 of total non-residential expenditures--has risen by more than 50% for the 10 months of 2015 versus 2014---and was responsible for more than 4 percentage points of total non-residential growth YTD.
Other categories that are up sharply this year include spending on offices (up 22% YTD) and spending on lodging (up 30.8% YTD). Not surprisingly, one of the largest categories to experience a contraction is the power sector—where spending has shrunk by 18% YTD.