Despite the bleak economy, private nonresidential construction spending increased 0.7 percent in November 2008, according to the January 5 report by the U.S. Census Bureau. Over the past year, private nonresidential construction spending has increased 10.3 percent and stood at $428.2 billion in November. Overall, total nonresidential construction spending was $742.1 billion in November 2008, up 1.0 percent from October and up 9.2 percent from November 2007 (see graph). 

Twelve of the 16 subsectors within the nonresidential construction index produced gains on a year-over-year basis, with manufacturing (up 61.5 percent), public safety (up 29.8 percent) and power (up 27.1 percent). Meanwhile, ten of those 16 subsectors recorded increases on a monthly basis including public safety (up 9.3 percent), conservation and development (up 9.0 percent) and power (up 5.3 percent).

However, some subsectors posted decreases in spending on a year-over-year basis including communication (down 27.0 percent), commercial (down 12.9 percent) and religious construction (down 5.4 percent).  On a monthly basis, communication-related construction spending was down (7.1 percent), religious (down 5.1 percent), commercial (down 1.3) along with amusement and recreation (down 1.3 percent).

Public nonresidential construction continued to increase and was up 1.4 percent in November on a monthly basis and up 7.8 percent on a year-over-year basis. On the flip side, residential construction continues to slide (down 4.1 percent) from October 2008 and down 22.8 percent from November 2007. Total construction was down 0.6 percent from last month and 3.3 percent from the same time last year.