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
Windows and Doors | Feb 28, 2024
DOE launches $2 million prize to advance cost-effective, energy-efficient commercial windows
The U.S. Department of Energy launched the American-Made Building Envelope Innovation Prize—Secondary Glazing Systems. The program will offer up to $2 million to encourage production of high-performance, cost-effective commercial windows.
AEC Innovators | Feb 28, 2024
How Suffolk Construction identifies ConTech and PropTech startups for investment, adoption
Contractor giant Suffolk Construction has invested in 27 ConTech and PropTech companies since 2019 through its Suffolk Technologies venture capital firm. Parker Mundt, Suffolk Technologies’ Vice President–Platforms, recently spoke with Building Design+Construction about his company’s investment strategy.
Performing Arts Centers | Feb 27, 2024
Frank Gehry-designed expansion of the Colburn School performing arts center set to break ground
In April, the Colburn School, an institute for music and dance education and performance, will break ground on a 100,000-sf expansion designed by architect Frank Gehry. Located in downtown Los Angeles, the performing arts center will join the neighboring Walt Disney Concert Hall and The Grand by Gehry, forming the largest concentration of Gehry-designed buildings in the world.
Construction Costs | Feb 27, 2024
Experts see construction material prices stabilizing in 2024
Gordian’s Q1 2024 Quarterly Construction Cost Insights Report brings good news: Although there are some materials whose prices have continued to show volatility, costs at a macro level are returning to a level of stability, suggesting predictable historical price escalation factors.
Construction Costs | Feb 22, 2024
K-12 school construction costs for 2024
Data from Gordian breaks down the average cost per square foot for four different types of K-12 school buildings (elementary schools, junior high schools, high schools, and vocational schools) across 10 U.S. cities.
MFPRO+ Special Reports | Feb 22, 2024
Crystal Lagoons: A deep dive into real estate's most extreme guest amenity
These year-round, manmade, crystal clear blue lagoons offer a groundbreaking technology with immense potential to redefine the concept of water amenities. However, navigating regulatory challenges and ensuring long-term sustainability are crucial to success with Crystal Lagoons.
Architects | Feb 21, 2024
Architecture Billings Index remains in 'declining billings' state in January 2024
Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.
AEC Tech | Feb 20, 2024
AI for construction: What kind of tool can artificial intelligence become for AEC teams?
Avoiding the hype and gathering good data are half the battle toward making artificial intelligence tools useful for performing design, operational, and jobsite tasks.
Building Tech | Feb 20, 2024
Construction method featuring LEGO-like bricks wins global innovation award
A new construction method featuring LEGO-like bricks made from a renewable composite material took first place for building innovations at the 2024 JEC Composites Innovation Awards in Paris, France.
AEC Tech | Feb 20, 2024
ABC releases technology guide for AI in construction
Associated Builders and Contractors has released an artificial intelligence (AI) technology guide for the U.S. construction industry. AI in Construction — What Does It Mean for Our Contractors? outlines definitions, construction use cases, and considerations for the implementation of AI in construction.