National nonresidential construction spending increased 0.4 percent in December, according to an Associated Builders and Contractors analysis of data published Feb. 1 by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.174 trillion.
Spending was down on a monthly basis in 8 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.2 percent in December, while public nonresidential construction spending was up 1.4 percent.
"Nonresidential construction spending finished 2023 up more than 20 percent — the 19th consecutive monthly increase — and will carry ample momentum in 2024," said ABC Chief Economist Anirban Basu.
"While much of that strength is due to surging investment in new manufacturing structures, roughly half of the 16 nonresidential subsegments saw spending increases by 20 percent or more in 2023.
"That said, privately financed nonresidential activity actually declined in December, albeit by just 0.2 percent," said Basu. "That decrease in private activity was offset by surging activity in the highway and street category, which along with other publicly financed segments will retain momentum in the coming months as infrastructure investments are finally put in place."
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