Nonresidential construction spending dropped 0.2% from May to June to a seasonally adjusted annual rate of $1.21 trillion, according to the U.S. Census Bureau. Compared with June 2023, nonresidential construction grew 5.3%.
“A new trend in nonresidential construction is emerging, and it’s not a good thing,” Associated Builders and Contractors Chief Economist Anirban Basu said in a statement. “Despite a bevy of megaprojects in certain parts of the nation, overall nonresidential construction spending appears to have entered a period of stagnation. The flattening of momentum has been apparent for the better part of a year, but the impact of higher interest rates, tighter credit conditions and a softening economy is increasingly apparent in the most recent data, which indicate that aggregate nonresidential construction spending is in decline.”
Spending decreased on a monthly basis in 7 of 16 nonresidential subcategories. Private nonresidential spending fell 0.1% in June and public nonresidential construction spending fell 0.4%.
Read the full construction spending report here.
