Nonresidential Construction Spending Rises Slightly in January

National nonresidential construction spending edged up 0.1% in January, reaching a seasonally adjusted annualized rate of $1.248 trillion, according to an Associated Builders and Contractors (ABC) analysis of U.S. Census Bureau data released Monday.

Spending increased in 12 of 16 nonresidential subcategories, with public nonresidential construction rising 0.2%, while private nonresidential spending remained flat.

“Nonresidential construction spending rebounded slightly in January, yet this report is far from encouraging,” ABC chief economist Anirban Basu said.

“Data center construction accounted for more than three-fourths of the monthly increase, while other categories, including manufacturing, have shown little movement.”

Despite economic uncertainty and high interest rates, contractors remain optimistic.

Nearly 65% expect sales growth in early 2025, according to ABC’s Construction Confidence Index. However, Basu cautioned that sentiment may shift as broader economic indicators weaken.