Following a 2 percent surge in August, nonresidential construction spending – which includes both privately and publicly financed construction – slipped 0.1 percent in September to a seasonally adjusted annual rate of $550.9 billion, according to the November 1 report by the U.S. Census Bureau. Year-over-year, total nonresidential construction spending is down 1.3 percent.

Private nonresidential construction spending was up 0.3 percent for the month and is 7.4 percent from one year ago. Public nonresidential construction spending decreased 0.4 percent for the month and is down 8.6 percent from the same time last.

One half of the sixteen nonresidential construction subsectors posted increases for the month, including health care, up 2.2 percent; communication, 2.2 percent higher; sewage and waste disposal, up 1.8 percent; and lodging, up 1.7 percent. Three subsectors experienced increased spending from one year ago with power construction spending up 19.3 percent; commercial construction 9.7 percent higher; and manufacturing construction spending up 4.7 percent.

Eight nonresidential construction subsectors had decreases in spending for the month, including conservation and development, down 7.7 percent; public safety, 4.9 percent lower; water supply, down 2.4 percent; and transportation, down 2.3 percent.  With spending down in the majority of nonresidential construction subsectors year-over-year, those posting the largest declines include lodging, down 18.8 percent; religious, 16.7 percent lower; sewage and waste disposal, down 13.1 percent; amusement and recreation, 12.3 percent lower; and water supply construction, down 12.1 percent.

Residential construction spending increased 0.7 percent for the month, but is down 1.1 percent over the past twelve months. Overall, total construction spending – which includes both nonresidential and residential – rose 0.2 percent in September, but is down 1.3 percent compared to September 2010.