National nonresidential construction spending decreased 0.1% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion.
Spending declined on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was up 0.4% in May.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” said ABC Chief Economist Anirban Basu. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.
“Private nonresidential spending has lagged and, after falling 0.3% in May, is up just 4.1% year over year,” said Basu. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic. Despite this recent private sector moderation, contractors remain confident about the next few quarters, with a majority expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
Related Stories
Giants 400 | Nov 7, 2017
Top 25 transit construction firms
Skanska USA, Webcor Builders, and AECOM top BD+C’s ranking of the nation’s largest transit sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Architects | Nov 6, 2017
How to start a negotiation: Begin as you mean to continue
How you start a negotiation often will determine where you end up, writes negotiation and mediation expert Brenda Radmacher.
Giants 400 | Nov 2, 2017
Top 80 industrial construction firms
Walbridge, Jacobs, and Fluor top BD+C’s ranking of the nation’s largest industrial sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 30, 2017
Top 85 green construction firms
Turner Construction Co., Clark Group, and AECOM top BD+C’s ranking of the nation’s largest green sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Oct 29, 2017
Multifamily visionaries: The Beach Company’s family ties
Spanning four generations, The Beach Company continues to expand its development footprint across the Southeast.
Sports and Recreational Facilities | Oct 23, 2017
Top 50 sports construction firms
AECOM, Mortenson Construction, and Turner Construction Co. top BD+C’s ranking of the nation’s largest sports sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 19, 2017
Race for talent drives office designs
Is the shift toward attracting younger workers too much or not enough?
Giants 400 | Oct 16, 2017
Data center market forecast: Clearly cloudy
Look for mission-critical construction to double in the next few years.
Data Centers | Oct 13, 2017
Top 35 data center construction firms
Turner Construction Co., Holder Construction, and DPR Constrcution top BD+C’s ranking of the nation’s largest data center sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 9, 2017
Top 80 K-12 construction firms
Gilbane Building Co., Balfour Beatty US, and Skanska USA top BD+C’s ranking of the nation’s largest K-12 sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.