National nonresidential construction spending rose 0.1 percent and totaled $1.07 trillion in June on a seasonally adjusted annualized basis, according to national construction industry trade association Associated Builders and Contractors’ (ABC; Washington, D.C.) analysis of data from the U.S. Census Bureau.
Over the past 12 months, nonresidential construction spending was up 18 percent, ABC reports.
Healthcare construction spending, specifically, was down 0.9 percent between May and June. From September 2021 to April 2023, healthcare spending has risen about 23 percent, according U.S. Census Bureau.
Despite the recent monthly decline, ABC reports that spending in the healthcare segment remains near the highest level on record as facilities invest in improved HVAC and automated systems in the wake of the pandemic.
Additionally, ABC’s analysis showed private nonresidential spending was virtually unchanged, while public nonresidential construction spending rose 0.3 percent in June.
“Nonresidential construction spending growth downshifted over the past two months,” ABC Chief Economist Anirban Basu said in a press release. “While stakeholders can expect ongoing spending growth in public nonresidential construction segments as more Infrastructure Investment and Jobs Act monies flow into the economy, private developer-driven activity appears to be drying up in the context of higher costs of capital and tighter credit conditions.
“Among other things, these dynamics will translate into larger spreads in performance among contractors,” Basu added. “… The good news is that there remain private construction segments associated with rosier prospects, including manufacturing, data centers, and healthcare.”
For more on ABC’s report, go here.