US commercial construction sets spending record for February

US commercial or non-residential construction spending increased 0.3% to nearly US$1.26 trillion in February � the “highest level on record� according to Associated Builders and Contractors (ABC) chief economist, Anirban Basu.

Rising material prices in US construction (Image generated with AI) An illustration representing rising US construction spending. (Image generated with AI)

ABC is a construction and contractor trade association in the US representing more than 20,000 members. The group analysed data from the US Census Bureau to determine the figures for the historic month of non-residential construction spending.

Basu said, “A surge in highway and street spending accounted for more than 40% of the monthly increase, and public sector non-residential spending is now up more than 6% on a year-over-year basis.�

On the specifics for February, spending was up monthly in nine of the 16 non-residential subcategories. Private non-residential spending increased 0.4%, while public non-residential construction spending was up 0.2% in February.

On the year, however, private sector commercial or non-residential construction spending was down. “Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economywide inflation,� Basu added.

Basu said contractor confidence remains high, despite potential headwinds for construction on the horizon.

“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,� said Basu. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months.�

2025 February non-residential spending table Table courtesy Associated Buildes and Contractors Table courtesy Associated Buildes and Contractors
US infrastructure’s ‘report card� grade improves amid call for focus on resilience The state of US infrastructure across 18 different categories has improved thanks to enhanced levels of funding, but there is still an “investment gap� and a need to focus on resilience

±ØÓ®ÌåÓý

STAY CONNECTED

Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

CONNECT WITH THE TEAM
Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Editor, Editorial, UK â€� Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
Eleanor Shefford Brand Manager Tel: +44 (0) 1892 786 236 E-mail: [email protected]