Nonresidential construction spending and construction industry hiring has increased in February according to Associated Builders and Contractors (ABC) analysis.
The ABC has analysed the latest findings of the US Census Bureau and US. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey.
Industry job openings increased by 22,000 last month but are down by 165,000 from the same time last year.
“Construction industry hiring continued to pick up in February, accelerating to the fastest rate since the first half of 2024,” ABC chief economist Anirban Basu said.
“However, industrywide job openings remain subdued compared to this time last year. Still, there are signs that construction workers retain outsized leverage compared to their employers. Contractors remain reluctant to lay off workers, while construction workers quit their jobs at the fastest pace since last May.
“With contractors optimistic about expanding their staffing levels over the next six months, according to ABC’s Construction Confidence Index, the pace of hiring should continue to accelerate through the middle of 2025.”
National nonresidential construction spending increased 0.3 per cent in February. Spending was up on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending increased 0.4 per cent, while public nonresidential construction spending was up 0.2 per cent in February.
“Nonresidential spending rebounded in February, rising to the highest level on record,” Basu said.
“A surge in highway and street spending accounted for more than 40 per cent of the monthly increase, and public sector nonresidential spending is now up more than six per cent on a year-over-year basis. Unfortunately, private sector spending has not kept pace and is up just 2.5 per cent since last February, a rate of increase slower than economywide inflation.
“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months.
“Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months, according to ABC’s Construction Confidence Index.”
