Steel Markets

Nonresidential Drives September Construction Spending: AGC
Written by David Schollaert
November 4, 2022
Spending on nonresidential construction now outpaces residential construction projects, the Associated General Contractors of America (AGC) reported.
Construction spending hit $1.811 trillion at a seasonally adjusted annual rate in September, a 0.2% increase versus August and up nearly 11% year-on-year (YoY).
“Demand remains strong for a range of nonresidential construction segments despite supply chain challenges and rising interest rates,” AGC CEO Stephen Sandherr said.
But gains in public sector transportation construction, including for highways and streets, have lagged other fast-growing segments due to Buy America and other new regulatory requirements, the report said.
AGC said new Buy America rules were “keeping officials from moving forward on some projects as they await guidance from the Biden administration on how to comply.”
“The best way to accelerate investments in our aging transportation sector is to provide immediate relief to the Buy America rules that make no sense at a time when supply chains remain very challenged,” Sandherr said. “The administration can provide an immediate boost to infrastructure upgrades by relaxing what are proving to be unworkable new requirements.”
Construction spending on private residential construction was flat in September but is still up 12.7% YoY. Spending on private nonresidential construction was up 1.0% in September and 10.5% for the year.
Private nonresidential construction gains were driven primarily by manufacturing construction, which was up 7.6% month-on-month (MoM) and 43.3% YoY. And while commercial construction slipped by 0.7% for the month, it was 22.6% higher versus the same year-ago period. Lodging construction was up 0.7% in September and up 15.8% YoY.
Private sector power construction continued to decline, down 0.4% for the month and down 12.9% for the year.
Public construction spending decreased by 0.4% in September, with mixed results for the three largest segments. Highway and street construction spending was up (1.7% MoM and 8.7% YoY). Educational spending was flat MoM but down 1.0% YoY. Transportation construction spending declined (1.3% MoM and 3.2% YoY).
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Markets

Trading firms Mercuria and Tata International partner in joint venture
Geneva-based global commodities trader Mercuria is set to acquire a majority stake in Tata International, according to a report in India's Economic Times.
Glenfarne Alaska LNG and POSCO ink preliminary partnership
Glenfarne Alaska LNG and POSCO signed a preliminary strategic agreement during the GasTech Conference in Milan on Thursday.

Steel export volumes remain weak through July
Following a 3% decline in June, the amount of steel shipped outside of the US edged up 1% in July to 623,000 short tons. July was the sixth-lowest monthly export rate since the COVID-19 pandemic, and...

Hot-rolled market participants say ‘doldrums’ to roll on through year-end
Participants in the hot-rolled steel sheet market expect the market to remain subdued through the end of the year.

Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.