Nonresidential construction spending climbed 0.1% in July and is down 1.3% compared with July 2025, according to Associated Builders and Contractors.
For public construction, spending was down 0.2% for the month and is up 1.9% year to date. Private nonresidential spending increased 0.4% in July and is down 3.3% year to date. Spending was down for the month in eight of the 16 nonresidential subcategories.
“The increase in nonresidential construction spending that occurred in July was entirely due to data centers,” said ABC Chief Economist Anirban Basu. “Excluding that booming category, nonresidential spending fell for the second straight month and is down to the lowest level since September 2023.
“Nonresidential activity is even more concentrated given that the power category, which has been boosted by the electricity needs of data centers, has also grown substantially over the past year,” Basu continued. “While contractors remain upbeat about their sales over the next six months, according to ABC’s Construction Confidence Index, that upbeat outlook is increasingly dependent on a single sector.”
