ABC: Nonresidential Construction Spending Remains Stagnant in October

WASHINGTON, Jan. 21-National nonresidential construction spending remained virtually unchanged on a monthly basis in October and was down 0.9% year over year, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.25 trillion.

Spending was up on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.2%, while public nonresidential construction spending was up 0.1% in October.

"Nonresidential construction failed to gather momentum at the start of 2025's third quarter," said ABC Chief Economist Anirban Basu. "While there are few sources of private nonresidential growth outside of the still surging data center category, much of the recent decline in construction spending is due to a precipitous drop in manufacturing investment. With CHIPS Act-enabled megaprojects winding down and the stiff headwind of trade policy, manufacturing construction spending has fallen by nearly 10% over the past 12 months, accounting for more than the entire decline in private nonresidential spending. Despite consistently downbeat construction industry data during the latter months of 2025, contractors remain upbeat about the first half of 2026, according to ABC's Construction Confidence Index."

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