National nonresidential construction spending increased 0.1% in July to a seasonally adjusted annual rate of $1.286 trillion, according to an analysis by Associated Builders and Contractors of U.S. Census Bureau data.
Private nonresidential construction spending rose 0.4%, while public nonresidential spending declined 0.2%. Spending decreased in eight of 16 nonresidential categories.
The increase was driven by data center construction, according to ABC Chief Economist Anirban Basu. Excluding data centers, nonresidential spending declined for the second consecutive month and reached its lowest level since September 2023.
The power category has also grown significantly over the past year, driven in part by electricity demand from data centers. ABC said the construction outlook remains positive, but activity is becoming increasingly concentrated in a small number of sectors.
