US Nonresidential Construction Spending Falls in December

A closer look at the US Census Bureau’s construction spending report for December 2025, with analysis by Associated Builders and Contractors (ABC), shows that US nonresidential construction spending declined 0.6%.

On a seasonally adjusted annualized basis, nonresidential construction spending totaled $1.24 trillion in December.

Spending decreased in 12 of the 16 nonresidential construction subcategories. Private nonresidential spending fell 0.7%, while public nonresidential construction spending slipped 0.4%.

In remarks accompanying the report, ABC Chief Economist Anirban Basu said:

“Nonresidential construction spending contracted sharply in December. This decline was concentrated in the manufacturing segment, which is now down nearly 16% from the August 2024 all-time high. Given trade policy uncertainty and the waning effects of the CHIPS Act, manufacturing-related spending will likely continue to decline over the next several quarters.

While manufacturing is the most significant driver of nonresidential weakness, it’s far from the only one. Eight of the 11 private nonresidential subsegments contracted in December, and total private nonresidential spending is now down 1.8% year-over-year. Given this weakness, it is unsurprising that ABC’s Construction Backlog Indicator fell to a four-year low in January.”