National nonresidential construction spending decreased 0.2 percent in December 2024, according to an Associated Builders & Contractors (ABC) analysis of U.S. Census Bureau data.
On a seasonally adjusted annualized basis, nonresidential spending totaled $1.241 trillion.
Spending was down on a monthly basis in nine of 16 nonresidential subcategories. Private nonresidential spending increased 0.1 percent, while public nonresidential construction spending was down 0.5 percent in December.
“Public sector nonresidential spending fell sharply in the last month of 2024, but that decline was likely a short-term phenomenon as the transition between presidential administrations and cold weather delayed construction work,” says Anirban Basu, ABC’s chief economist. “While public sector activity should at least partially rebound in the coming months, high interest rates and an emerging trade war with Canada and Mexico will continue to weigh on many privately financed segments.”
“What little private sector nonresidential momentum exists remains concentrated in just two segments,” said Basu. “Data centers, which are part of the office category, and manufacturing accounted for 94% of the increase in total nonresidential construction spending from December 2023 to December 2024. Activity in these segments, and perhaps only these segments, will remain elevated regardless of upward pressure on construction costs.”