US Nonresidential Construction Spending Flat in January

On Monday, Associated Builders and Contractors (ABC) reported that total US nonresidential construction spending was virtually unchanged in January, based on its analysis of US Census Bureau data. On a seasonally adjusted annual basis, spending totaled $1.245 trillion.

Spending declined in 9 of the 16 nonresidential subcategories. Private nonresidential construction spending fell 0.4% for the month, while public nonresidential spending increased 0.6%.

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

“Private nonresidential construction spending contracted for the fourth consecutive month in January and is now down 8% from the December 2023 all-time high. While harsh winter weather likely bears some blame, the major issue is the ongoing decline in computer/electronic manufacturing construction. With CHIPS Act-incentivized megaprojects wrapping up, spending in that subcategory is down nearly 40% over the past 18 months.

With the exception of data centers, which saw another 2% jump in spending during January, there are few sources of momentum to offset the precipitous decline in manufacturing construction activity. This lackluster performance is especially concerning in light of the ongoing conflict in Iran, which will ignite materials price escalation and heighten already elevated levels of economic uncertainty. While ABC’s Construction Backlog Indicator rebounded slightly in February, rising 0.1 months from January’s four-year low, it may be a difficult first half of 2026 for many contractors.”