National nonresidential construction spending decreased 0.1 percent in May, according to an Associated Builders & Contractors (ABC) analysis of U.S. Census Bureau data.
On a seasonally adjusted annualized basis, nonresidential construction spending totaled $1.21 trillion.
Spending declined on a monthly basis in nine of 16 nonresidential subcategories. Private nonresidential spending decreased 0.3 percent in May, while public nonresidential construction spending was up 0.4 percent.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2 percent below the all-time high achieved in March 2024,” says Anirban Basu, ABC’s chief economist. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4 percent increase in publicly funded nonresidential spending in May.”
While private nonresidential spending dipped in May, it is up only 4.1 percent year over year.
“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,” Basu says. “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.”
