Nonresidential construction spending increased 0.2% from February to March and is up 13.7% compared with March 2023, according to Associated Builders and Contractors.
For public construction, spending increased 0.8% for the month and is up 17.9% year to date. Private nonresidential spending fell 0.2% from February to March and is up 11.1% year to date. Spending was up for the month in 10 of the 16 nonresidential subcategories.
“Nonresidential construction spending rebounded in March, ending a streak of two straight monthly declines,” said ABC Chief Economist Anirban Basu. “The increase was entirely due to increased public construction spending; private sector nonresidential spending dipped slightly lower in March. Despite wavering over the first three months of 2024, nonresidential spending is now up approximately 35% from the start of the pandemic and has outpaced economywide inflation (+20%) over that span. Ongoing spending strength, driven by both the public sector and the ascendant manufacturing category, continues to support healthy backlog for contractors, according to ABC’s Construction Backlog Indicator.”
