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Dive Brief:
- Non-residential construction spending fell 3.8% over the past 12 months through May, according to an analysis of U.S. Census Bureau data on Associated Builders and Contractors.
- Private non-residential spending fell 0.3% month-on-month in May and fell 6.6% over the past 12 months. The sector has fallen for seven consecutive months, Anirban Basu, ABC’s chief economist, said in the statement. That weakness stems in large part from the ongoing decline in manufacturing-related construction spending, he said.
- On a more positive note, spending on non-residential public projects rose 0.4% month-on-month in May, although the level has risen only slightly by 0.3% over the past 12 months to May, the report said.
Diving knowledge:
Data center work continues drives most of the growth around construction spending, Basu said.
“At the moment, momentum remains largely concentrated in the data center segment,” Basu said. “Those lucky enough to work in the data center have significantly longer delays than those who don’t.”
ABC said contractors with data center contracts have one an average portfolio of 11.6 monthsabout three months more than companies without this type of work. Outside of data centers, however, Basu noted that spending on private projects has been somewhat muted for much of this year.
“Warehouse construction spending, which appeared to stabilize in early 2026, has now fallen for three consecutive months and is down 8.5% year-on-year,” Basu said. “The general office category remains in freefall, down 11.9% since May 2025.”
Public spending on construction on the other hand, as per roads or water infrastructureshas fared slightly better this year, according to a report from the Associated General Contractors of America.
For this reason, AGC officials urged Congress and the White House to approve a new one highway and transport bill before the current law expires on September 30, in order to maintain this healthy momentum.
“Highway construction is one of the strongest segments of the construction market,” AGC Chief Economist Ken Simonson said in the statement. “Investment in infrastructure is offsetting weakness in several private segments.”
