Data and Figs

In Dates & Figs
May 28, 2024
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US Census

Construction spending during March 2024 was estimated at a seasonally adjusted annual rate of $2,083.9 billion, 0.2 percent (±0.8 percent) below the revised February estimate of $2,087.8 billion. The March figure is 9.6 percent (±1.3 percent) above the March 2023 estimate of $1,901.4 billion. During the first three months of this year, construction spending amounted to $461.0 billion, 10.6 percent (±1.3 percent) above the $416.7 billion for the same period in 2023.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,600.8 billion, 0.5 percent (±0.7 percent) below the revised February estimate of $1,608.5 billion. Residential construction was at a seasonally adjusted annual rate of $884.3 billion in March, 0.7 percent (±1.3 percent)* below the revised February estimate of $890.9 billion. Nonresidential construction was at a seasonally adjusted annual rate of $716.5 billion in March, 0.2 percent (±0.7 percent)* below the revised February estimate of $717.6 billion.

Public Construction

In March, the estimated seasonally adjusted annual rate of public construction spending was $483.1 billion, 0.8 percent (±1.5 percent) above the revised February estimate of $479.3 billion.

Educational construction was at a seasonally adjusted annual rate of $102.7 billion, 1.0 percent (±2.0 percent) above the revised February estimate of $101.7 billion. Highway construction was at a seasonally adjusted annual rate of $149.0 billion, 0.9 percent (±3.9 percent)* above the revised February estimate of $147.7 billion.

Dodge Construction Network

The Dodge Momentum Index (DMI), issued by Dodge Construction Network, increased 6.1% in April to 173.9 (2000=100) from the revised March reading of 164.0. Over the month, commercial planning improved 12.6% and institutional planning dropped 6.3%.

“The Dodge Momentum Index (DMI) saw positive progress in April, alongside a deluge of data center projects that entered the planning stage,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Outsized demand to build Cloud and AI infrastructure is supporting above-average activity in the sector. Most other categories, however, faced slower growth over the month. Across these industries, it’s likely that owners and developers are grappling with uncertainty around interest rates and lending standards, thus delaying their decisions to push projects into the planning queue. If interest rates begin to tick down in the latter half of 2024, more substantive growth in nonresidential planning activity should follow.”

A flood of data center projects entered planning in April, causing robust growth in the commercial segment of the DMI, while traditional office and hotel projects continued to face slower momentum. Warehouse planning was basically flat. On the institutional side, education and healthcare planning activity receded again – in part, driven by another month of weak life science and R&D laboratory activity. Year over year, the DMI was 1% lower than in April 2023. The commercial segment was up 6% from year-ago levels, while the institutional segment was down 15% over the same period.

In April, a total of 25 projects valued at $100 million or more entered planning. The largest commercial projects included the $1 billion Convergent Technology Park in Remington, Virginia, the $630 million Dulles Digital Data Center (Buildings 8 and 6) in Dulles, Virginia, and the $330 million Google Red Hawk Data Center (Phase 2) in Mesa, Arizona. The largest institutional projects to enter planning were the $275 million Win-River Resort and Casino in Redding, California and the $254 million AdventHealth Hospital in Weaverville, North Carolina.

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.

American Institute of Architects

The AIA/Deltek Architecture Billings Index (ABI) reported a score of 43.6 for the month of March, indicating business conditions continue to soften for architecture firms. This marks the 14th consecutive month of declining billings at firms as inflation, supply chain issues and other economic challenges continue to affect business.

“Elevated construction costs coupled with prolonged high interest rates continue to discourage new project activity,” said Kermit Baker, PhD, AIA Chief Economist. However, institutional design work seems to have stabilized, providing a solid base for the profession as it awaits a more positive economic environment for construction.

All regions of the country reported a decline in billings, with business conditions looking the softest this month at firms in the Midwest and the South. While there was a decline in billings for firms of all specializations, billings declined at a faster pace for firms with a commercial/industrial specialization.

The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-twelve-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.

Use of Alternative Fuel Sources in Construction

In response to the increasing volatility of fuel prices as well as the rising ESG requirements and expectations, construction companies and other heavy equipment users are now including alternative fuel sources (some more than others) in developing their sustainable, long-term energy strategies. However, there remain significant barriers to entry.

That was one of the key findings of BuiltWorlds’ newly released 2024 Sustainable Jobsites Benchmarking Report—which presents data and analysis from the company’s 2024 Sustainable Jobsites Survey