Nonresidential construction spending decreased 0.1% from October 2023 to November 2023 and is up 18.1% compared with November 2022, according to Associated Builders and Contractors.
For public construction, spending decreased 0.6% for the month and is up 16.3% year-to-date. Private nonresidential spending rose 0.2% from October 2023 to November 2023 and is up 19.3% year-to-date. Spending was down for the month in 11 of the 16 nonresidential subcategories.
“Nonresidential construction spending dipped in November due to a 0.6% decline in public-sector activity,” said ABC Chief Economist Anirban Basu. “Despite the monthly setback, spending is up an impressive 18.1% over the past year, with the gains evenly distributed between the public and private sectors, and currently sits just below the all-time high established in October.
“Manufacturing-related construction continues to surge and now accounts for roughly 45% of the year-over-year increase in nonresidential spending,” Basu continued. “Other predominantly privately financed segments have posted impressive growth in 2023, with educational, health care and power construction all up significantly over the past 12 months, while certain publicly financed categories like highway and street and sewage and waste disposal have also posted strong year-over-year performances. With only 24% of contractors expecting their sales to decline over the next six months, according to ABC’s Construction Confidence Index, the industry appears set to carry momentum into the new year.”
