Chicago Construction News staff writer
Total nonresidential construction spending was essentially unchanged in January, according to an analysis released Thursday by the Associated Builders and Contractors (ABC) based on U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.245 trillion.
Nine of 16 nonresidential subcategories saw monthly declines. Private nonresidential construction spending fell 0.4%, while public nonresidential spending increased 0.6% in January.
“Private nonresidential construction spending contracted for the fourth consecutive month in January and is now down 8% from the December 2023 all-time high,” said ABC Chief Economist Anirban Basu. He noted that while harsh winter weather may have played a role, the larger factor is the slowdown in computer and electronic manufacturing construction. “With CHIPS Act-incentivized megaprojects wrapping up, spending in that subcategory is down nearly 40% over the past 18 months.”
Data centers were the exception, posting a 2% increase in January, Basu said. “There are few sources of momentum to offset the precipitous decline in manufacturing construction activity,” he said, adding that tensions in Iran could drive up materials costs and increase economic uncertainty.
ABC’s Construction Backlog Indicator showed a slight rebound in February, rising 0.1 months from January’s four-year low, but Basu said contractors may face a challenging first half of 2026.
