ABC

WASHINGTON, March 24—Total nonresidential construction spending was virtually unchanged in January, according to an Associated Builders and Contractors analysis of data published yesterday by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.245 trillion.

Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.4%, while public nonresidential construction spending was up 0.6% in January.

“New York is feeling the same slowdown in private nonresidential construction reflected in the national data, rising costs and uncertainty aren’t helping,” said Brian Sampson, president of ABC’s Empire State Chapter. “While data center work offers some strength, our contractors need policies that reduce barriers, control costs, and keep projects moving. We remain committed to ensuring our merit shop builders can continue delivering for communities across the state.”

“Private nonresidential construction spending contracted for the fourth consecutive month in January and is now down 8% from the December 2023 all-time high,” said ABC Chief Economist Anirban Basu. “While harsh winter weather likely bears some blame, the major issue is the ongoing decline in computer/electronic manufacturing construction. With CHIPS Act-incentivized megaprojects wrapping up, spending in that subcategory is down nearly 40% over the past 18 months.

“With the exception of data centers, which saw another 2% jump in spending during January, there are few sources of momentum to offset the precipitous decline in manufacturing construction activity,” said Basu. “This lackluster performance is especially concerning in light of the ongoing conflict in Iran, which will ignite materials price escalation and heighten already elevated levels of economic uncertainty.

While ABC’s Construction Backlog Indicator rebounded slightly in February, rising 0.1 months from January’s four-year low, it may be a difficult first half of 2026 for many contractors.”