National nonresidential construction spending decreased 0.6% in December, according to an Associated Builders and Contractors (ABC) analysis of data published this week by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.24 trillion.
Spending was down on a monthly basis in 12 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.7%, while public nonresidential construction spending was down 0.4% in December.
“Nonresidential construction spending contracted sharply in December,” said ABC Chief Economist Anirban Basu. “This decline was concentrated in the manufacturing segment, which is now down nearly 16% from the August 2024 all-time high. Given trade policy uncertainty and the waning effects of the CHIPS Act, manufacturing-related spending will likely continue to decline over the next several quarters.
“While manufacturing is the most significant driver of nonresidential weakness, it’s far from the only one,” added Basu. “Eight of the 11 private nonresidential subsegments contracted in December, and total private nonresidential spending is now down 1.8% year over year. Given this weakness, it is unsurprising that ABC’s Construction Backlog Indicator fell to a four-year low in January.”
The Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings, and the Producer Price Index, can be viewed at abc.org/economics.
About Associated Builders and Contractors
Associated Builders and Contractors (ABC) is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work, and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.
