National nonresidential construction spending dropped by 0.2% in December 2024, based on an analysis by Associated Builders and Contractors (ABC) using data from the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending amounted to $1.241 trillion.
Spending decreased from November 2024 in 9 of the 16 nonresidential subcategories. Private nonresidential spending rose by 0.1 percent, while public nonresidential construction spending fell by 0.5 percent in December 2024.
“Public sector nonresidential spending saw a significant decline in December 2024, but this drop was likely temporary due to the transition between presidential administrations and cold weather, which delayed construction work,” said Anirban Basu, ABC’s chief economist.
“While public sector activity is expected to partially recover in the coming months, high interest rates and the rising trade tensions with Canada and Mexico will continue to impact many privately financed sectors.”
Basu also noted, “Private sector nonresidential momentum remains limited, concentrated mainly in two areas: data centers within the office category and manufacturing. These segments accounted for 94% of the growth in total nonresidential construction spending from December 2023 to December 2024. Activity in these segments, and perhaps only these segments, will continue to be strong despite rising construction costs.”
Reference
Metal Construction News. (2025) Data centers, manufacturing drive construction growth amid decline. February 4.