Spending Grows 14% Over 2022

Feb. 5, 2024
December spending topped $2 trillion.

Construction spending totaled $2.1 trillion in December, up 0.9% over November and 13.9% over December 2022.

Gains in residential and public segments offset mixed results among private nonresidential markets, according to an analysis by the Associated General Contractors of America.

“Construction spending rose across the board in 2023 despite higher interest costs, shortages of workers, and delays in awarding federal money for infrastructure,” said Ken Simonson, chief economist, in a statement. “These challenges remain in early 2024 but the industry is poised for further growth overall.”

Spending on private residential construction rose by 1.4% and 6.8% year-over-year. Single-family construction climbed for the eighth straight month, by 1.6%. Spending on multifamily projects rose 0.3%.

Public construction spending increased 1.3% in December and 21.3% from a year earlier. Spending on the largest public category, highways and streets, jumped 4.1% for the month, while outlays for educational structures slipped 0.1%. Spending on transportation facilities rose 1.1%.

Other infrastructure segments were mixed: sewage and waste disposal declined 0.8% and water supply spending slumped 2.5%; conservation and development outlays rose 1.4%.

Spending on private nonresidential construction dipped 0.2% in December but increased by 19.1% from December 2022. The largest segments mostly declined for the month. Manufacturing construction edged down 0.1%. Commercial construction—comprising warehouse, retail, and farm projects—declined 0.5%. Investment in power, oil, and gas projects rose 0.3%. Spending on offices and data centers decreased by 0.2% and health care construction fell 0.8%.