These two segments accounted for 94% of US non-residential construction spending increase
04 February 2025
Non-residential construction spending in the US dipped 0.2% in December 2024, but further analysis of data shows two segments 鈥� data centre and manufacturing builds 鈥� represented 94% of increased spending for the full year of 2024.
Exterior view of construction site for Meta Mesa Data Center in Mesa, Arizona, US. (Image: Adobe Stock)
The Associated Builders and Contractors (ABC) 鈥� a trade organisation with more than 23,000 members in US building and contracting 鈥� released its assessment of US Census Bureau data, which showed private-sector non-residential spending was ruled by the two subsections.
Anirban Basu, ABC鈥檚 chief economist, said, 鈥淒ata centres, which are part of the office category, and manufacturing accounted for 94% of the increase in total non-residential construction spending from December 2023 to December 2024.鈥�
It was an anomaly for spending in the private sector, noted ABC, and there鈥檚 few signs the momentum will slow in 2025 (or that other sub-segments might pick up).
鈥淎ctivity in these segments, and perhaps only these segments, will remain elevated regardless of upward pressure on construction costs,鈥� said Basu.
He added, 鈥淲hile public sector activity should at least partially rebound in the coming months, high interest rates and an emerging trade war with Canada and Mexico will continue to weigh on many privately financed segments.鈥�
On a seasonally adjusted annualised basis, non-residential spending totalled US$1.2 trillion in 2024.
ABC analysis of December 2024 non-residential data
Graph courtesy Associated Builders and Contractors
As for the last month of last year, Basu said, 鈥淧ublic sector non-residential spending fell sharply in in the last month of 2024, but that decline was likely a short-term phenomenon as the transition between presidential administrations and cold weather delayed construction work.鈥�
ABC said national non-residential construction spending decreased 0.2% in December 2024.
ABC added that spending was down monthly in nine of the 16 non-residential subcategories: amusement/recreation, public safety, commercial, educational, transportation, health care, sewage/waste disposal, conversation/development and water supply.
Private non-residential spending increased 0.1% in December 2024, while public non-residential construction spending was down 0.5% during the same period.
Table courtesy Associated Builders and Contractors
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