Glass-Related Construction Spending Continues to GrowJuly 5th, 2017 | Category: Industry News
Construction spending was mostly unchanged in May, but building segments that use large amounts of glass and glazing showed positive year-over-year gains, according to U.S. Census Bureau data.
The office sector ticked up 1.6 percent for the month but jumped 14.7 percent year-over year, totaling $72.2 billion. That segment also showed big gains year-to-date, with a 15.4-percent increase. This continues to be a hot sector for contract glaziers, as reported in the 2017 Glass and Glazing Industry Outlook.
The commercial category was tepid in May compared to April with a 0.7-percent decrease to $83 billion. However, it too saw a good gain from the same time a year ago, bumping up 9.1 percent. Through the first five months of the year, commercial is up 14.5 percent compared to the same period in 2016.
Educational construction increased both on a monthly and yearly basis by 2.8 percent and 6.8 percent, respectively. That segment totaled $93.6 billion and grew 4.7 percent year-to-date. Healthcare construction, at $39.2 billion, was up 0.6 percent for the month, 2.1 percent year-over-year and 0.6 percent year-to-date.
The lodging category decreased spending by 0.3 percent to $27.7 billion, though that number was up 2.3 percent from May 2016. Year-to-date, lodging saw a 2-percent increase in spending.
New multifamily construction, at $62 billion, saw a 3.3-percent dip in the value of starts but a 3-percent increase year-over-year. Through the first five months of the year, spending in this segment is up 6.2 percent from the same time last year.
Total construction spending during May 2017 was estimated at a seasonally adjusted annual rate of $1,230.1 billion, nearly the same as the revised April estimate of $1,230.4 billion. The May figure is 4.5 percent above the May 2016 estimate of $1,177.0 billion. During the first five months of this year, construction spending amounted to $469.2 billion, 6.1 percent above the $442.4 billion for the same period in 2016.
Overall spending on private construction logged a seasonally adjusted annual rate of $943.2 billion, 0.6 percent below the revised April estimate of $949.3 billion.
Residential construction was at a seasonally adjusted annual rate of $509.6 billion in May, 0.6 percent below the revised April estimate of $512.7 billion. Nonresidential construction recorded a seasonally adjusted annual rate of $433.6 billion in May, 0.7 percent below the revised April estimate of $436.7 billion.
In May, the estimated seasonally adjusted annual rate of public construction spending was $286.9 billion, 2.1 percent above the revised April estimate of $281.0 billion.