National nonresidential construction spending remains unchanged in October compared to the previous month and is down 0.9% from the same period last year, according to an analysis by Associated Builders and Contractors based on U.S. Census Bureau data. Total nonresidential spending reaches $1.25 trillion on a seasonally adjusted annualized basis.
Spending increases are recorded in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreases 0.2%, while public nonresidential spending increases 0.1% during the same month.
Associated Builders and Contractors Chief Economist Anirban Basu states that nonresidential construction fails to gather momentum at the start of 2025’s third quarter. He notes that the ongoing decline in total spending is mainly due to a nearly 10% fall in manufacturing investment over the past 12 months. Much of the decrease follows the completion of CHIPS Act-enabled projects and weaker trade conditions.
Despite reduced spending during the latter months of 2025, contractors maintain positive expectations for the first half of 2026, based on ABC’s Construction Confidence Index.
