Nonresidential construction spending decreased 0.3% from March to April and is up 11.5% compared with April 2023, according to Associated Builders and Contractors.
For public construction, spending decreased 0.2% for the month and is up 16.7% year to date. Private nonresidential spending fell 0.3% from March to April and is up 8.3% year to date. Spending was down for the month in 10 of the 16 nonresidential subcategories.
“Nonresidential construction spending fell for the second consecutive month in April but remains just 0.3% below the all-time high established in February,” said ABC Chief Economist Anirban Basu. “An unprecedented increase in manufacturing construction spending has pushed overall nonresidential activity 31.9% higher over the past two years. Ongoing investment in industrial facilities as well as significant infrastructure-related outlays will keep nonresidential spending elevated despite the current expectation that interest rates will stay higher for longer. This outlook is reflected in ABC’s Construction Confidence Index, which shows that a majority of contractors expect their sales to increase over the next two quarters.”
