(855) Marcum1 | FOLLOW US  
Marcum LLP
Marcum LLP
News

Press Release

 

In This Edition

Marcum Commercial Construction Index Reports 2nd Quarter Spending Increase in Commercial and Office Construction

Featured: Joseph Natarelli, National Construction Industry Group Leader
Anirban Basu, Chief Construction Economist

Share:

New York City, NY - Commercial construction spending in the second quarter of 2017 increased 13 percent from the same period last year and office construction rose 11 percent, according to the latest Marcum Commercial Construction Index. However, these bright spots contrast with a decline of 3.1 percent in overall nonresidential construction spending in June year-over-year and a monthly drop of 2.0 percent from May 2017. The index is produced by the Construction Services Group of Marcum LLP, a national accounting and advisory firm.

Anirban Basu, the report’s author, attributes the relative strength of the commercial and office subsectors to the ecommerce boom. He also notes that June spending in communication construction increased 4.9 percent year-over-year and 2.8 percent from May 2017. The only other subsector to record a gain was health care, with a 2.8 percent annualized improvement, although monthly results in the sector declined 0.2 percent in June.

“With interest rates remaining near rock-bottom levels, investors have been chased up the risk spectrum, including into commercial real estate. That has helped to raise property values and prompt new construction. These dynamics have also helped lift industry backlog and supported reasonably solid profit margins,” Mr. Basu wrote.

Spending in all 12 of the remaining nonresidential construction subsectors retreated on both an annualized and monthly basis. The largest declines came in public sector spending, including conservation and development (-20.6% and -7.3%, respectively), sewage and waste disposal (-16.8% and -2.4%), and water supply (-16.4% and -3.7%).

“The infrastructure boom we have been waiting for has not arrived as of yet. Business attitudes and the business environment and confidence remain high for the moment. Backlogs in the private sector are healthy. Investment is robust. It’s my hope that we can turn some of this momentum towards infrastructure, sooner rather than later,” said Joseph Natarelli, national leader of Marcum’s Construction Services Group and an office managing partner in New Haven, Connecticut.

Current economic trends in the construction industry will be discussed in depth at the upcoming annual Marcum Construction Summits in Ft. Lauderdale, Florida, on September 7; New Haven, Conn., on September 27; and New York City on October 23. Mr. Basu will keynote all three conferences, which are presented in partnership with the construction industry’s leading trade organizations and industry publisher. For registration and information, visit www.marcumevents.com.

One of the leading construction accounting firms in the U.S., Marcum LLP's Construction group provides audit, consulting, and taxation services to clients ranging from start-ups to multi-billion-dollar enterprises. The group's professionals, among the country’s foremost experts in construction accounting, are frequent industry authors and speakers and also serve as technical reviewers for the AICPA’s construction audit and taxation guides. In addition to the quarterly Marcum Commercial Construction Index, the group publishes the annual Marcum JOLT Survey Analysis, a discussion of employment trends in the construction industry.

About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as high net worth individuals, private equity funds and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services.

 
Featured
Joseph  Natarelli

Construction Services Leader
Assurance
New Haven, CT
Anirban  Basu

Chief Construction Economist


 




 
HAVE A QUESTION? ASK MARCUM
 
STAY IN TOUCH.

SIGN UP TODAY FOR MARCUM'S NEWSLETTERS.

ABOUT MARCUM LLP

Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland.

Learn More

CONNECT WITH US
OFFICES

Headquarters
750 3rd Avenue, 11th Floor
New York, NY 10017

Find an Office

(855) MARCUM1
info@marcumllp.com

FOUNDATION

Marcum Foundation

AFFILIATIONS

Leading Edge Alliance

DOWNLOAD THE MARCUM ON THE GO APP

 
 
© 2017 Marcum LLP. All Rights Reserved.
Privacy | Legal | Sitemap