Nationwide nonresidential building spending decreased 0.2 p.c in December, based on an Related Builders and Contractors (ABC) evaluation of information revealed by the U.S. Census Bureau. On a seasonally adjusted annualized foundation, nonresidential spending totaled $1.241 trillion.
Spending was down from November in 9 of the 16 nonresidential subcategories. Personal nonresidential spending elevated 0.1 p.c, whereas public nonresidential building spending was down 0.5 p.c in December.
“Public sector nonresidential spending fell sharply within the final month of 2024, however that decline was seemingly a short-term phenomenon because the transition between presidential administrations and chilly climate delayed building work,” says ABC chief economist Anirban Basu. “Whereas public sector exercise ought to at the least partially rebound within the coming months, excessive rates of interest and an rising commerce battle with Canada and Mexico will proceed to weigh on many privately financed segments.
“What little non-public sector nonresidential momentum exists stays concentrated in simply two segments,” says Basu. “Knowledge facilities, that are a part of the workplace class, and manufacturing accounted for 94 p.c of the rise in whole nonresidential building spending from December 2023 to December 2024. Exercise in these segments, and maybe solely these segments, will stay elevated no matter upward stress on building prices.”
