Construction spending in December totaled $1.49 trillion, an increase of 1.0 percent from the pace in November and 5.7 percent higher than in December 2019. But the gains were limited to residential construction, which soared 3.1 percent for the month and 20.7 percent year-over-year. Meanwhile, private and public nonresidential spending fell 0.8 percent from November and 4.8 percent from a year earlier.
Private nonresidential construction spending slumped 1.7 percent from November to December and 9.8 percent from December 2019. All 11 private nonresidential categories in the government report declined from a year earlier.
The largest private nonresidential segment, power construction, fell 10.8 percent year-over-year despite a gain of 0.6 percent from November to December. Among the other large private nonresidential project types, commercial construction—comprising retail, warehouse and farm structures—slipped 1.4 percent year-over-year and 2.8 percent for the month. Manufacturing construction tumbled 17.6 percent from a year earlier and 5.6 percent for the month. Office construction declined 3.3 percent year-over-year despite edging up 0.2 percent in December. Healthcare construction fell 8.7 percent from the year before and 3.0 percent since November.
Public construction spending increased 3.0 percent year-over-year and 0.5 percent for the month. Results were mixed among the largest segments. Highway and street construction rose 3.9 percent from a year earlier and 0.9 percent for the month. Educational construction increased 4.5 percent year-over-year and 0.6 percent in December. But spending on transportation facilities declined 1.0 percent for the year despite a gain of 0.9 percent in December.
Private residential construction spending increased for the seventh-straight month, jumping 20.7 percent year-over-year percent and 3.1 percent in December. Single-family homebuilding leaped 23.8 percent compared to December 2019 and 5.8 percent for the month. Multifamily construction spending climbed 17.8 percent for the year and inched up 0.1 percent for the month.
