From press releases
WASHINGTON, July 2—National nonresidential construction spending decreased 0.1% in May, 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, nonresidential spending totaled $1.21 trillion.
Meanwhile, the construction industry also reported 339,000 job openings on the last day of May, according to the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 2,000 in May but are down by 38,000 from the same time last year.
"While the number of open, unfilled construction positions has declined over the past year, the industry is still faced with widespread labor shortages,” said ABC Chief Economist Anirban Basu. “The 4% of construction jobs that were unfilled in May is a higher rate than in the months leading up to the start of pandemic, a time when construction labor was already scarce."
Because of these shortages, a higher share of construction workers quit in May than in any month over the past year.
“Over half of contractors intend to increase their staffing levels during the next six months, according to ABC’s Construction Confidence Index,” said Basu. “As a result of this ongoing intention to hire and the lack of available workers, contractors laid off just 1.8% of the workforce in May, a smaller share than in any month on record prior to late 2021.”
Returning t0 spending, that measure in May declined on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was up 0.4% in May.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” noted Basu. “Much of that progress is attributable to ongoing infrastructure investments."
“Private nonresidential spending has lagged,” he added. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic. Despite this recent private sector moderation, contractors remain confident about the next few quarters, with a majority expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”
For more, contact Erika Walter, ABC | (202) 905-2104 | [email protected].