WASHINGTON, DC-Construction spending in the US rose 0.4% to $810 billion in November 2010, according to the US Census Bureau--the third consecutive month in which this metric has risen, but still 6% below November 2009’s figure of $861.5 billion.

Private residential and public construction each gained 0.7% over October 2010, while private nonresidential construction edged down 0.1%. The lodging industry took the biggest hit, with a 48% decrease in November to $9.6 billion. Manufacturing-related construction dropped 34.7% to $34.4 billion. Office fell 18.9% to $36.5 billion. Highway and street construction rose 6.8%, courtesy of the stimulus spending. Sewage and waste disposal facility construction, another public category, rose by 8.3% to $26.8 billion. 

Over the course of the year expect to see these ratios reversed as public construction scales back, severely in some cases, and private construction spending grows to make up for the shortfall, albeit barely, Associated General Contractors of America’s chief economist, Ken Simonson, tells GlobeSt.com. “Public construction is going to be facing more difficult times,” he says.

Thus far it has been bolstered by federal stimulus money and spending for BRAC, as well as the Gulf Coast Recovery program. These projects are nearing an end, or, in the case of the stimulus, the money is running out. “State and local governments will start spending on other necessities such as restoring programs that have been cut or ending furloughs or funding employee pensions,” Simonson says. “More construction at the public level is just not in the cards.” 

The private sector will grow, making up the shortfall, but not to any great degree, Simonson adds. “There will be good growth in multifamily property construction,” he says. “Also, I think we will see a strong level of power construction--gas fired facilities and renewable power sources such as wind farms. Developer-financed projects will perk up with warehouse construction, especially as exports grow.” Finally, lodging will see more construction as business travel continues to improve.