Nonresidential construction spending decreased 0.1% from October 2024 to November 2024 and is up 2.8% compared with November 2023, according to Associated Builders and Contractors.
For public construction, spending decreased 0.2% for the month and is up 4.4% year to date. Private nonresidential spending was unchanged from October 2024 to November 2024 but is up 1.7% year to date. Spending was down for the month in eight of the 16 nonresidential subcategories.
“Contractor confidence surged post-election,” said ABC Chief Economist Anirban Basu. “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.
“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,” Basu continued. “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.”
