ABC: Nonresidential Construction Spending Slips Again in April Amid Economic Pressures

National nonresidential construction spending edged down 0.1% in April, according to the latest data from the U.S. Census Bureau, analyzed by Associated Builders and Contractors (ABC). On a seasonally adjusted annual rate, total spending in the sector reached $1.248 trillion.

Six out of 16 nonresidential subcategories saw month-over-month declines. Private nonresidential construction dipped by 0.5%, while public sector spending inched up 0.5%.

Associated Builders and Contractors (ABC)

According to ABC Chief Economist Anirban Basu, a combination of high interest rates, tight lending conditions, and trade policy uncertainty continues to pressure the industry. In April, nearly 22% of contractors reported project delays or cancellations tied to tariffs.

“The market remains sluggish, with limited areas of strength outside data centers and select public-sector projects,” said Basu. He noted that private nonresidential spending has declined in three of the first four months of 2025 and is on track to fall 4% by year’s end. One area of concern is computer and electronic manufacturing construction, which saw a nearly 10% year-over-year drop—an abrupt shift after being a strong performer in 2023 and 2024.