The Daily Dig
National nonresidential construction spending edged up 0.1% in June, according to an Associated Builders and Contractors analysis of new Census Bureau data. On a seasonally adjusted annualized basis, total spending reached $1.277 trillion. Gains were uneven. Only 8 of the 16 nonresidential subcategories posted monthly increases. Both public and private nonresidential spending rose 0.1% for the month, though private spending was down nearly 5% compared to a year ago.
The headline number hides a market that has cooled considerably since its peak. ABC Chief Economist Anirban Basu noted that private nonresidential construction spending reached an all-time high of $806.1 billion through April 2025. Since then, that figure has grown only three times over 14 months. It has since fallen to $745.3 billion, a decline exceeding 7%.
Strip out data centers, and the picture looks worse. Private nonresidential spending excluding data centers fell 0.6% in June alone and is down 7.9% year over year. Data center construction spending told the opposite story, up 7% for the month and up 46% compared to a year ago.
That momentum shows up directly in contractor backlogs. Among ABC members, the 13% under contract for data center work report an average backlog of 11.0 months, compared with 8.5 months for the 87% who are not.
Snapshot:
Report Date: Aug. 3
Source: Associated Builders and Contractors, analysis of U.S. Census Bureau data
National Nonresidential Spending (June, SAAR): $1.277 trillion
Monthly Change, Nonresidential Spending: +0.1%
Public Nonresidential Spending (Monthly Change): +0.1%
Private Nonresidential Spending (Monthly Change): +0.1%
Private Nonresidential Spending (Year Over Year): Down nearly 5%
Private Nonresidential Peak (Through April 2025, SAAR): $806.1 billion
Private Nonresidential Spending Since Peak (SAAR): $745.3 billion
Decline From Peak: Exceeding 7%
Private Nonresidential Spending Excluding Data Centers (Monthly Change): -0.6%
Private Nonresidential Spending Excluding Data Centers (Year Over Year): -7.9%
Data Center Construction Spending (Monthly Change): +7%
Data Center Construction Spending (Year Over Year): +46%
ABC Members Under Contract for Data Center Work: 13%
Backlog, Data Center Contractors: 11.0 months
Backlog, Non-Data Center Contractors (87% of surveyed members): 8.5 months
TheJobWalk Thoughts
The 0.1% headline gain is masking a split market. Private nonresidential spending excluding data centers is down 7.9% year over year, while total private nonresidential spending rose 0.1% in June. That gap suggests data centers were the main driver behind the monthly gain. GCs and subs building outside that sector should plan around a shrinking segment, not the top-line number.
The backlog gap is the clearest signal in this report. Among surveyed ABC members, those under contract for data center work report 11.0 months of backlog versus 8.5 months for those without it, a 2.5-month gap. That's a real business development signal, though data center work carries its own technical, safety and qualification barriers that make it a harder entry point than the backlog number alone suggests.
Sales teams should read this as a market where the non-data center segment is thinning. Firms without data center exposure may find competition tightening for the commercial and institutional work that remains, though how that plays out on pricing is still an open question.
Courtesy of ABC
