National nonresidential construction spending experienced a marginal 0.1% decline in November, according to an analysis by the Associated Builders and Contractors (ABC) of data released by the U.S. Census Bureau. The seasonally adjusted annualized total reached $1.234 trillion.
On a year-over-year basis, spending increased by 2.8%, though this figure is roughly flat when adjusted for inflation.
Among the 16 nonresidential construction categories, spending fell in eight. Private nonresidential construction spending remained stable, while public nonresidential spending dipped by 0.2% in November.
“Contractor confidence surged post-election,” ABC Chief Economist Anirban Basu said.
“Many contractors expect a combination of deregulation and tax cuts to support greater activity and profitability going forward, including substantial investment in traditional energy sectors and manufacturing. Still, there are reasons for concern,” he noted.
“Nonresidential construction spending momentum has all but disappeared, despite an ongoing boom in data center construction (up 43% year over year), largely because project financing costs remain elevated,” said Basu.
“With inflation remaining stubbornly high and potentially accelerating going forward, interest rates stand to stay higher for longer. Prospective tariff increases threaten to push construction materials prices higher, and shifting immigration policies could expand future worker shortages. Only time will tell whether the recent upswing in optimism will prove justified.”
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