Dates & Figs

In Dates & Figs
January 28, 2025
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U.S. Census:

MONTHLY CONSTRUCTION SPENDING, NOVEMBER 2024

Total Construction

Construction spending during November 2024 was estimated at a seasonally adjusted annual rate of $2,152.6 billion, virtually unchanged from (±1.0 percent)* the revised October estimate of $2,152.3 billion. The November figure is 3.0 percent (±1.5 percent) above the November 2023 estimate of $2,090.7 billion. During the first eleven months of this year, construction spending amounted to $1,986.8 billion, 6.5 percent (±1.2 percent) above the $1,866.0 billion for the same period in 2023.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,650.7 billion, 0.1 percent (±0.5 percent)* above the revised October estimate of $1,649.8 billion. Residential construction was at a seasonally adjusted annual rate of $906.2 billion in November, 0.1 percent (±1.3 percent)* above the revised October estimate of $905.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $744.5 billion in November, virtually unchanged from (±0.5 percent)* the revised October estimate of $744.6 billion.

Public Construction

In November, the estimated seasonally adjusted annual rate of public construction spending was $501.9 billion, 0.1 percent (±1.6 percent)* below the revised October estimate of $502.5 billion. Educational construction was at a seasonally adjusted annual rate of $107.0 billion, 0.2 percent (±2.5 percent)* below the revised October estimate of $107.2 billion. Highway construction was at a seasonally adjusted annual rate of $142.9 billion, 0.2 percent (±4.3 percent)* above the revised October estimate of $142.7 billion.

Dodge Momentum Index Grows 10% in December

The Dodge Momentum Index (DMI), issued by Dodge Construction Network, grew 10.2% in December to 212.0 (2000=100) from the revised November reading of 192.3. Over the month, commercial planning increased 14.2% while institutional planning improved 2.5%.

“Commercial activity rebounded strongly in December, thanks to a re-acceleration in data center and warehouse planning activity,” stated Sarah Martin, associate director of forecasting at Dodge Construction Network. “Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”

On the commercial side, data center and warehouse planning drove much of the growth this month, while stronger healthcare and education activity supported the institutional portion. In December, the DMI was up 19% when compared to year-ago levels. The commercial segment was up 30% from December 2023, while the institutional segment was flat over the same period. The influence of data centers on the DMI this year has been substantial. If we remove all data center projects in 2023 and 2024, commercial planning would be up 8% from year-ago levels, and the entire DMI would be up 5%.

A total of 32 projects valued at $100 million or more entered planning throughout December. The largest commercial projects included six phases of the $1.6 billion Powerhouse 95 data center in Fredericksburg, Virginia, and four phases of the $1 billion Brambleton Data Center at Tech Park in Ashburn, Virginia. The largest institutional projects to enter planning were the $226 million OhioHealth Outpatient Cancer Center in Columbus, Ohio, and the $220 million county jail in Peoria, Illinois.

The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.

ABC’s Construction Backlog Indicator Slips in December, Contractor Confidence Remains Elevated

Associated Builders and Contractors reported that its Construction Backlog Indicator inched down to 8.3 months in December, according to an ABC member survey conducted Dec. 20 to Jan. 6. The reading is down 0.3 months from December 2023.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for December. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog in the commercial and institutional category has fallen by almost a full month over the past year and is now at the lowest level since February 2023. Backlog in the infrastructure category, on the other hand, currently stands at the highest level since August 2023.

ABC’s Construction Confidence Index readings for sales and staffing levels improved in December, while the reading for profit margins declined. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog inched lower in December, contractors broadly expect construction activity to pick up in the first half of this year,” said ABC Chief Economist Anirban Basu. “Contractor confidence remained extraordinarily elevated in December, with the share of contractors that expect their sales to increase over the next six months now at the highest level since early 2022. Despite that confidence, the path of interest rates will play a critical role in industry performance in 2025. If rates remain higher for longer, backlog may remain subdued, especially in the struggling commercial and institutional category.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months. View the methodology for both indicators.