National nonresidential construction spending decreased 0.1% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion.
Spending declined on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was up 0.4% in May.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” said ABC Chief Economist Anirban Basu. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.
“Private nonresidential spending has lagged and, after falling 0.3% in May, is up just 4.1% year over year,” said Basu. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic. Despite this recent private sector moderation, contractors remain confident about the next few quarters, with a majority expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
Related Stories
University Buildings | Jun 9, 2023
Cornell’s new information science building will foster dynamic exchange of ideas and quiet, focused research
Construction recently began on Cornell University’s new 135,000-sf building for the Cornell Ann S. Bowers College of Computing and Information Science (Cornell Bowers CIS). The structure will bring together the departments of Computer Science, Information Science, and Statistics and Data Science for the first time in one complex.
Museums | Jun 6, 2023
New wing of Natural History Museums of Los Angeles to be a destination and portal
NHM Commons, a new wing and community hub under construction at The Natural History Museums (NHM) of Los Angeles County, was designed to be both a destination and a portal into the building and to the surrounding grounds.
Codes and Standards | Jun 6, 2023
California’s new power grid modernization plan furthers ambitious climate goals
California’s new $7.3 billion grid modernization plan is a crucial step in furthering its ambitious climate goals. The board of governors for the California Independent System Operator (CAISO), the state’s grid operator, recently approved a strategy to build thousands of miles of new high-voltage transmission lines.
Mixed-Use | Jun 6, 2023
Public-private partnerships crucial to central business district revitalization
Central Business Districts are under pressure to keep themselves relevant as they face competition from new, vibrant mixed-use neighborhoods emerging across the world’s largest cities.
Contractors | Jun 6, 2023
Gilbane Building Company promotes COO to its chief executive post
Adam Jelen has been with the firm 18 of his 30 years in the construction industry.
Multifamily Housing | Jun 6, 2023
Minnesota expected to adopt building code that would cut energy use by 80%
Minnesota Gov. Tim Walz is expected to soon sign a bill that would change the state’s commercial building code so that new structures would use 80% less energy when compared to a 2004 baseline standard. The legislation aims for full implementation of the new code by 2036.
Healthcare Facilities | Jun 5, 2023
Modernizing mental health care in emergency departments: Improving patient outcomes
In today’s mental health crisis, there is a widespread shortage of beds to handle certain populations. Patients may languish in the ED for hours or days before they can be linked to an appropriate inpatient program.
Student Housing | Jun 5, 2023
The power of student engagement: How on-campus student housing can increase enrollment
Studies have confirmed that students are more likely to graduate when they live on campus, particularly when the on-campus experience encourages student learning and engagement, writes Design Collaborative's Nathan Woods, AIA.
Engineers | Jun 5, 2023
How to properly assess structural wind damage
Properly assessing wind damage can identify vulnerabilities in a building's design or construction, which could lead to future damage or loss, writes Matt Wagner, SE, Principal and Managing Director with Walter P Moore.
Cladding and Facade Systems | Jun 5, 2023
27 important questions about façade leakage
Walter P Moore’s Darek Brandt discusses the key questions building owners and property managers should be asking to determine the health of their building's façade.
