According to the Associated Builders and Contractors’ analysis of data published today by the U.S. Census Bureau, nonresidential construction spending rose to the highest level on record in February 2025.
According to the recent analysis by the Associated Builders and Contractors (ABC) of U.S. Census Bureau data, national non-residential construction spending increased 0.3% in February – totaling $1.255 trillion (seasonally adjusted annualized basis).
- Spending was up on a monthly basis in 9 of the 16 nonresidential subcategories
- Private nonresidential spending increased 0.4%
- Public nonresidential construction spending was up 0.2%
Associated Builders and Contractors
As quoted in its official report, ABC Chief Economist Anirban Basu explained that a surge in highway and street spending accounted for more than 40% of the increase. “Public sector nonresidential spending is now up more than 6% on a year-over-year basis,” added Basu. “Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economywide inflation.”
Associated Builders and Contractors
“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,” said Basu. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
