According to the U.S. Census Bureau, construction spending during March 2024 was estimated at a seasonally adjusted annual rate of $2,083.9 billion, 0.2% (±0.8%) below the revised February estimate of $2,087.8 billion. The March figure is 9.6% (±1.3%) above the March 2023 estimate of $1,901.4 billion. During the first three months of this year, construction spending amounted to $461.0 billion, 10.6% (±1.3%) above the $416.7 billion for the same period in 2023.
In March, the estimated seasonally adjusted annual rate of public construction spending was $483.1 billion, 0.8% (±1.5%) above the revised February estimate of $479.3 billion.
- Highway construction was at a seasonally adjusted annual rate of $149.0 billion, 0.9% (±3.9%) above the revised February estimate of $147.7 billion.
- Educational construction was at a seasonally adjusted annual rate of $102.7 billion, 1.0% (±2.0%) above the revised February estimate of $101.7 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,600.8 billion, 0.5% (±0.7%) below the revised February estimate of $1,608.5 billion.
- Residential construction was at a seasonally adjusted annual rate of $884.3 billion in March, 0.7% (±1.3%) below the revised February estimate of $890.9 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $716.5 billion in March, 0.2% (±0.7%) below the revised February estimate of $717.6 billion.
“Private nonresidential categories showed varied patterns, while multifamily construction continued to slip from record levels in 2023,” said Ken Simonson, SAssociated General Contractors’ chief economist. “Meanwhile, public construction posted healthy gains for the month and year-over-year. These diverse trends suggest there is still strong demand for projects, but a dearth of workers may be forcing a slowdown in spending.”
Construction spending, not adjusted for inflation, totaled $2.084 trillion at a seasonally adjusted annual rate in March. That figure is 0.2% below the downwardly revised February rate, but 9.6% above the March 2023 level.
“Nonresidential construction spending rebounded in March, ending a streak of two straight monthly declines,” said Associated Builders and Contractors’ Chief Economist Anirban Basu. “The increase was entirely due to increased public construction spending; private sector nonresidential spending dipped slightly lower in March. Despite wavering over the first three months of 2024, nonresidential spending is now up approximately 35% from the start of the pandemic and has outpaced economy wide inflation (+20%) over that span. Ongoing spending strength, driven by both the public sector and the ascendant manufacturing category, continues to support healthy backlog for contractors, according to ABC’s Construction Backlog Indicator.”