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
Building Team | Jul 1, 2022
Less portable potty, more movable restroom
Some contractors are packing up their portable potties and instead using the H3 Wellness Hub.
Market Data | Jun 30, 2022
Yardi Matrix releases new national rent growth forecast
Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.
Headquarters | Jun 30, 2022
Lenovo to build its new global headquarters in Beijing
Washington, D.C.-based architecture and design firm CallisonRTKL has announced it will create the new global headquarters in Beijing for Lenovo Group, a Chinese multinational personal technology company.
Mass Timber | Jun 29, 2022
Mass timber competition: building to net-zero winning proposals
The 2022 Mass Timber Competition: Building to Net-Zero is a design competition to expand the use of mass timber in the United States by demonstrating its versatility across building types and its ability to reduce the carbon footprint of the built environment.
Laboratories | Jun 29, 2022
The "collaboratory" brings digital innovation to the classroom
The Collaboratory—a mix of collaboration and laboratory—is a networking center being designed at the University of Denver’s College of Business.
Airports | Jun 29, 2022
BIG and HOK’s winning design for Zurich airport’s new terminal
Two years ago, Zurich Airport, which opened in the 1950s, launched an international design competition to replace the aging Dock A—the airport’s largest dock.
Museums | Jun 28, 2022
The California Science Center breaks grounds on its Air and Space Center
The California Science Center—a hands-on science center in Los Angeles—recently broke ground on its Samuel Oschin Air and Space Center.
Contractors | Jun 27, 2022
Reverse mentorship: A model for the future of the construction workforce
Reverse mentorship can help seasoned professionals develop new skills, stay connected with younger generations, and gain future-forward insights for life and business.
Building Team | Jun 27, 2022
Chapel of St. Ignatius by Steven Holl Architects receives AIA’s twenty-five year award
The American Institute of Architects (AIA) is honoring the Chapel of St. Ignatius in Seattle, designed by Steven Holl Architects, with its Twenty-five Year Award.
Green | Jun 22, 2022
The business case for passive house multifamily
A trio of Passive House experts talk about the true costs and benefits of passive house design and construction for multifamily projects.