National nonresidential construction spending increased 0.1% in January, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.248T.
Spending was up on a monthly basis in 12 of the 16 nonresidential subcategories. Private nonresidential spending was unchanged, while public nonresidential construction spending was up 0.2% in January.
“Nonresidential construction spending rebounded slightly in January, yet this report is far from encouraging,” said ABC Chief Economist Anirban Basu. “Data center construction spending increased another 1.9% for the month, accounting for more than three-fourths of the monthly increase in nonresidential activity. While that segment is so hot that it can melt through the effects of high interest rates, many other categories appear to be frozen in place. Even manufacturing, which still accounts for nearly $1 in every $5 of nonresidential construction spending, is virtually unchanged since May of last year.”
“Despite high interest rates and the looming effects of tariffs and heightened economic uncertainty, contractors remain optimistic,” said Basu. “Nearly 65% of contractors expect their sales to increase during the first half of 2025, according to the January reading of ABC’s Construction Confidence Index. That said, it’s possible that the February reading of ABC’s CCI will show increased pessimism given declines in other economic confidence indicators.” (Source)
