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Nonresidential Construction Spending Rebounds in March

May 1, 2024
On a seasonally adjusted annualized basis, nonresidential spending totaled $1.19 trillion.

WASHINGTON, DC — National nonresidential construction spending increased 0.2% in March, according to an Associated Builders and Contractors analysis of data published today by the US Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.19 trillion.

Spending was up on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.2%, while public nonresidential construction spending was up 0.8% in March.

“Nonresidential construction spending rebounded in March, ending a streak of two straight monthly declines,” said ABC Chief Economist Anirban Basu. “The increase was entirely due to increased public construction spending; private sector nonresidential spending dipped slightly lower in March. Despite wavering over the first three months of 2024, nonresidential spending is now up approximately 35% from the start of the pandemic and has outpaced economywide inflation (+20%) over that span. Ongoing spending strength, driven by both the public sector and the ascendant manufacturing category, continues to support healthy backlog for contractors, according to ABC’s Construction Backlog Indicator.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

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