Brief of diving:
- Surprising in non -residential construction was reduced to 0.2% In December, at an annual annual rate of $ 1.24 trillion, according to an analysis of builders and contractors associated with data from the United States Census Office published Monday.
- The expense decreased by nine of the 16 non -residential subcategories monthly. Public non -residential expenditure dropped by 0.5%, while non -residential private spending increased by 0.1%, according to the report.
- President Donald Trump’s proposed rates of 10% against China and 25% against Canada and Mexico generated concerns among industry economists about increasing material costs and the potential impact on future project expenditure, although new rates per Canadian and Mexican products stopped for at least 30 days on Monday. Chinese rates came into force on Tuesday morning.
Divide vision:
Concerns about increasing material costs are still heavy Future of expenditure under constructionJeffrey Shoaf, CEO of The Associated General Contractors of America, said in the last statement of the Commercial Association.
“Despite the fall in few segments, the demand for construction is still relatively strong,” said Shoaf. “But increasing the cost of a range of construction materials will promote contractors to increase the prices of offers, potentially harming the future demand of projects.”
The public sector recorded a sharp decrease in spending by 2024, although the fall was temporary as colder time and the transition between presidential administrations slowed down construction work, said Anirban Basu, an economist in none of ABC.
However, although public activity should be bouncing in the coming months, high interest rates and emerging trade war will probably hinder many short -term funded segments, he added.
Trump made 25% of rates in Canada and Mexico for at least one month on Monday, according to Associated Press. But its administration officially implemented additional fares for China imports from Tuesday, according to the White House.
In response, Beijing announced on Tuesday several economic measures aimed at the United States, including 15% tax on certain types of liquefied coal and natural gas and a 10% rate on raw, agricultural machinery, high-displacement cars and collection trucks in CNN. The measures come into force on February 10.
China also announced new effective export controls immediately on various related metal products and technologies. Tungsten is included, a mineral used in industrial and defense applications, as well as Tellurium, that can be used to make solar cells.
But the uncertainty about rates should not affect the pace of spending in data centers or manufacturing construction projects, said Basu.
Data centers and manufacturing projects represented 94% of the total number of non -residential expenses from December 2023 to December 2024, highlighting the growth concentration in these sectors, according to ABC.
“The little non -residential impulse in the private sector is still concentrated in only two segments,” said Basu. “Activity at [the data center and manufacturing] The segments, and perhaps only these segments, will remain high regardless of the upward pressure on the costs of construction. “
