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
Market Data | Nov 14, 2023
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of September 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.4 months in October from 9.0 months in September, according to an ABC member survey conducted from Oct. 19 to Nov. 2. The reading is down 0.4 months from October 2022. Backlog now stands at its lowest level since the first quarter of 2022.
Giants 400 | Nov 13, 2023
Top 60 Airport Facility Construction Firms for 2023
Hensel Phelps, Turner Construction, AECOM, and Walsh Group top BD+C's ranking of the nation's largest airport terminal and airport facilities general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Data Centers | Nov 13, 2023
Data center sector trends for 2023-2024
Demand for more data centers is soaring, but delivery can be stymied by supply delays, manpower shortages, and NIMBYism.
Education Facilities | Nov 9, 2023
Oakland schools’ central kitchen cooks up lessons along with 30,000 meals daily
CAW Architects recently completed a facility for the Oakland, Calif., school district that feeds students and teaches them how to grow, harvest, and cook produce grown onsite. The production kitchen at the Unified School District Central Kitchen, Instructional Farm, and Education Center, (“The Center”) prepares and distributes about 30,000 meals a day for district schools lacking their own kitchens.
Laboratories | Nov 8, 2023
Boston’s FORUM building to support cutting-edge life sciences research and development
Global real estate companies Lendlease and Ivanhoé Cambridge recently announced the topping-out of FORUM, a nine-story, 350,000-sf life science building in Boston. Located in Boston Landing, a 15-acre mixed-use community, the $545 million project will achieve operational net zero carbon upon completion in 2024.
Retail Centers | Nov 7, 2023
Omnichannel experiences, mixed-use development among top retail design trends for 2023-2024
Retailer survival continues to hinge on retail design trends like blending online and in-person shopping and mixing retail with other building types, such as offices and residential.
Giants 400 | Nov 6, 2023
Top 65 Cultural Facility Construction Firms for 2023
Turner Construction, Clark Group, Whiting-Turner, Gilbane, and Holder Construction top BD+C's ranking of the nation's largest cultural facilities sector general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all cultural building sectors, including concert venues, art galleries, museums, performing arts centers, and public libraries.
Giants 400 | Nov 6, 2023
Top 100 Government Building Construction Firms for 2023
Hensel Phelps, Turner Construction, Clark Group, Fluor, and BL Harbert top BD+C's rankings of the nation's largest government building sector general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all government building sectors, including federal, state, local, military, and Veterans Affairs (VA) buildings.
Healthcare Facilities | Nov 3, 2023
The University of Chicago Medicine is building its city’s first freestanding cancer center with inpatient and outpatient services
The University of Chicago Medicine (UChicago Medicine) is building Chicago’s first freestanding cancer center with inpatient and outpatient services. Aiming to bridge longstanding health disparities on Chicago’s South Side, the $815 million project will consolidate care and about 200 team members currently spread across at least five buildings. The new facility, which broke ground in September, is expected to open to patients in spring 2027.
Office Buildings | Nov 2, 2023
Amazon’s second headquarters completes its first buildings: a pair of 22-story towers
Amazon has completed construction of the first two buildings of its second headquarters, located in Arlington, Va. The all-electric structures, featuring low carbon concrete and mass timber, help further the company’s commitment to achieving net zero carbon emissions by 2040 and 100% renewable energy consumption by 2030. Designed by ZGF Architects, the two 22-story buildings are on track to become the largest LEED v4 Platinum buildings in the U.S.
