Nationwide nonresidential development spending decreased 0.5 p.c in March, based on an Related Builders and Contractors (ABC) evaluation of knowledge revealed by the US Census Bureau. On a seasonally adjusted annualized foundation, nonresidential spending totaled $1.25 trillion.
Spending was down on a month-to-month foundation in 11 of 16 nonresidential subcategories. Personal nonresidential spending fell 0.8 p.c, whereas public nonresidential development spending was down 0.2 p.c in March.
Anirban Basu, chief economist at ABC, says, “Nonresidential development spending fell sharply in March, with declines unfold throughout just about each non-public subsector. Information heart investments, which accounted for greater than 70 p.c of the rise in non-public nonresidential development spending between March 2024 and March 2025, are maybe the one remaining supply of business momentum. Manufacturing development, whereas nonetheless elevated, has wavered in latest months. Most business segments stay subdued beneath the burden of excessive borrowing prices and tight lending requirements. Residential development continues to slip.
“Given unprecedented financial uncertainty, spending is unlikely to rebound within the coming months. Whereas a majority of contractors surveyed in March have been nonetheless optimistic about their future gross sales, based on ABC’s Development Confidence Index, sentiment is prone to falter as the results of tariffs start to boost enter costs and stall or cancel initiatives.”
