ACEC Market Intelligence Update for October 2024

Recently, the US Census released the results of its monthly Value of Construction Put in Place Survey. The survey provides estimates of the total dollar value of construction work done in the U.S. This data includes design and construction spending for public and private projects.

The seasonally adjusted annual rate of $2.13 trillion for August 2024 represents a monthly decline of -0.1%. This is the third monthly decline due to prior revisions from the Census. It is the first time since October 2022 that there are 3 months of consecutive decline and represents an overal decline of -1.7% from the May 2024 high. Private construction declined -0.2% month over month (the third consecutive month of decline) while Public construction rose 0.3%.

Top Construction (Public & Private) Year to Date Project Growth by Classification

Project Classification	YTD Spending Jan – Aug 2023 (millions)	YTD Spending Jan – Aug 2024 (millions)	Percent Change	Absolute Change (millions)
Total Public Safety	$9,032	$12,347	36.7%	$3,315
Total Manufacturing	$122,189	$151,735	24.2%	$29,546
Total Water Supply	$17,921	$20,814	16.1%	$2,893
Total Religious	$2,362	$2,708	14.6%	$346
Total Power	$86,318	$97,174	12.6%	$10,856

Source: US Census Value of Construction Put in Place Survey October 1, 2024 release

While the latest release shows a decline in total construction growth throughout the early summer of 2024, nominal year over year growth is still positive at 4.1%. Overall economic growth in the US saw an increase in 2024 Q2 GDP growth as well as a recent revision upward to 3.0%, up from 1.6% growth for 2024 Q1.

Bottom Construction (Public & Private) Year to Date Project Growth by Classification

Project Classification	YTD Spending Jan – Aug 2023 (millions)	YTD Spending Jan – Aug 2024 (millions)	Percent Change	Absolute Change (millions)
Total Commercial	$94,869	$83,958	-11.5%	-$10,911
Total Lodging	$16,483	$15,540	-5.7%	-$943
Total Conservation and Development	$7,374	$7,468	1.3%	$94
Total Office	$65,412	$66,490	1.6%	$1,078
Total Communication	$17,856	$18,412	3.1%	$556

Source: US Census Value of Construction Put in Place Survey, October 1, 2024 release (Not Seasonally Adjusted).

With respect to year over year growth in individual markets, manfucturing continues to be a top area for design & construction spending with total year to date (YTD) spending of $152.3b. The Water supply and Power markets are also maintaining robust growth.

For the sectors with the lowest levels of growth, two categories expereincing significant decline include lodging and commercial. These sectors and office are all sensitive to interest rate levels and reflect the impact borrowing costs have had on land development for these sectors. The Office sector remains only slightly positive due to Data Center growth being included in this classification.

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