Nonresidential construction spending increased 0.1% from July to August and is up 4.1% compared with August 2023, according to Associated Builders and Contractors.
For public construction, spending increased 0.3% for the month and is up 7.9% year to date. Private nonresidential spending fell 0.1% from July to August but is up 3.6% year to date. Spending was up for the month in 10 of the 16 nonresidential subcategories.
“Nonresidential construction spending inched higher in August, and that’s almost entirely due to ongoing infrastructure investments,” said ABC Chief Economist Anirban Basu. “Public spending accounted for all of the nonresidential segment’s monthly increase and has risen nearly 8% over the past year, significantly outpacing privately financed nonresidential construction activity. As a result of ongoing weakness in certain private subsegments, ABC’s Construction Backlog Indicator has fallen by a full month over the past year. While falling interest rates will eventually serve as a tailwind for the industry, it may be several quarters before privately financed segments see any substantial relief.”
