Construction Spending Slips Due to Weather, Interest Rates

Monthly spending was down in 15 of 16 nonresidential categories, but on an annual basis, all sectors are still positive.

Construction Dive

April 2, 2024

1 Min Read
Brandon Bell/Getty Images via Getty Images

Nonresidential construction spending dropped 1% in February to a seasonally adjusted annual rate of $1.179 trillion, according to Associated Builders and Contractors’ analysis of U.S. Census Bureau data.

That decrease in February marks the second month in a row of construction spending contraction, following a 19-month streak of construction spending growth, according to the report.

“The optimist will likely shrug off both the January and February nonresidential construction spending declines as merely reflecting winter weather,” said Anirban Basu, ABC chief economist. “The pessimist will proclaim this release a wake-up call to contractors and an indication that higher interest rates have finally begun to make their mark.”

To read the rest of this story from our sister publication, Construction Dive, click here.

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