Nonresidential construction spending decreases in December 2025

National nonresidential construction spending decreased 0.6 percent in December, according to an Associated Builders and Contractors (ABC) analysis of data published today by the U.S. Census Bureau.

On a seasonally adjusted annualized basis, Washington-based ABC says nonresidential spending totaled $1.24 trillion. Spending decreased in 12 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.7 percent, while public nonresidential construction spending was down 0.4 percent in December.

ABC Chief Economist Anirban Basu added that a 16 percent decrease in manufacturing construction spending since an all-time high in August 2024 continues to negatively impact the overall sector.

“Given trade policy uncertainty and the waning effects of the CHIPS Act, manufacturing-related spending will likely continue to decline over the next several quarters,” he says. “While manufacturing is the most significant driver of nonresidential weakness, it’s far from the only one. Eight of the 11 private nonresidential subsegments contracted in December, and total private nonresidential spending is now down 1.8 percent year over year.”