According to the U.S. Census Bureau, construction spending during November 2024 was estimated at a seasonally adjusted annual rate of $2,152.6 billion, virtually unchanged from (±1.0%) the revised October estimate of $2,152.3 billion. The November figure is 3.0% (±1.5%) above the November 2023 estimate of $2,090.7 billion.
During the first 11 months of this year, construction spending amounted to $1,986.8 billion, 6.5% (±1.2%) above the $1,866.0 billion for the same period in 2023.
In November, the estimated seasonally adjusted annual rate of public construction spending was $501.9 billion, 0.1% (±1.6%) below the revised October estimate of $502.5 billion.
- Highway construction was at a seasonally adjusted annual rate of $142.9 billion, 0.2% (±4.3%) above the revised October estimate of $142.7 billion.
- Educational construction was at a seasonally adjusted annual rate of $107.0 billion, 0.2% (±2.5%) below the revised October estimate of $107.2 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,650.7 billion, 0.1% (±0.5%) above the revised October estimate of $1,649.8 billion.
- Residential construction was at a seasonally adjusted annual rate of $906.2 billion in November, 0.1% (±1.3%) above the revised October estimate of $905.1 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $744.5 billion in November, virtually unchanged from (±0.5%) the revised October estimate of $744.6 billion.
“Construction activity was closely balanced between segments that expanded or shrank in November,” said Ken Simonson, Associated General Contractors of America (AGC) chief economist. “But contractors appear to be optimistic about most categories heading into 2025.”
Association officials noted that the upcoming AGC of America/Sage 2025 Construction Hiring & Business Outlook will show contractors remain optimistic about overall demand for construction in 2025. But that same survey will also highlight how contractors are preparing to meet demand for different market segments this year even as they cope with new workforce and tariff challenges and adopt new technologies.
“Contractors have pretty clear expectations for the opportunities, and challenges, they will face this year,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Their predictions for the year provide us with an important tool for shaping our advocacy and education efforts.”
“Contractor confidence surged post-election,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Many contractors expect a combination of deregulation and tax cuts to support greater activity and profitability going forward, including substantial investment in traditional energy sectors and manufacturing. Still, there are reasons for concern.
“Nonresidential construction spending momentum has all but disappeared, despite an ongoing boom in data center construction (up 43% year over year), largely because project financing costs remain elevated,” said Basu. “With inflation remaining stubbornly high and potentially accelerating going forward, interest rates stand to stay higher for longer. Prospective tariff increases threaten to push construction materials prices higher, and shifting immigration policies could expand future worker shortages. Only time will tell whether the recent upswing in optimism will prove justified.”