Nonresidential construction spending increased 0.3% from January to February and is up 3.9% compared with February 2024, according to Associated Builders and Contractors.
For public construction, spending increased 0.2% for the month and is up 6.1% year to date. Private nonresidential spending increased 0.2% from January to February and is up 2.5% year to date. Spending was up for the month in nine of the 16 nonresidential subcategories.
“Nonresidential spending rebounded in February, rising to the highest level on record,” said ABC Chief Economist Anirban Basu. “A surge in highway and street spending accounted for more than 40% of the monthly increase, and public sector nonresidential spending is now up more than 6% on a year-over-year basis. Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economywide inflation.
“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,” Basu continued. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months, according to ABC’s Construction Confidence Index.”
