The U.S. Census Bureau released long-delayed figures for monthly construction spending activity on Feb. 27, showing a modest December improvement after a November dip.

The Bureau’s report shared that December total construction spending was estimated at an adjusted annual rate of $2.169 trillion, up 0.3% month-to-month after a 0.2% decrease in November. The December rebound was in line with economists’ expectations and snapped three straight months of decline.

On a year-over-year basis, December spending fell by 0.4%.

For the full year, total construction spending shrank by 1.4% vs. 2024.

Total U.S. Construction Spending: MoM % Change

Residential vs. NonRes

December nonresidential construction spending decreased 0.6% month-over-month to $1.24 trillion and improved 0.3% year-over-year, while residential spending jumped 1.5% month-over-month to $928 million and was down 1.2% year-over-year.

Within nonres, spending was down in 12 of its 16 subcategories, and down in eight of 11 private nonres segments. Private nonres spending was down 0.7% month-over-month, while public nonres spending was down 0.4%.

“Nonresidential construction spending contracted sharply in December,” Associated Builders & Contractors Chief Economist Anirban Basu said in the firm’s analysis. “This decline was concentrated in the manufacturing segment, which is now down nearly 16% from the August 2024 all-time high. Given trade policy uncertainty and the waning effects of the CHIPS Act, manufacturing-related spending will likely continue to decline over the next several quarters.”

Public vs. Private

December private construction increased 0.5% month-over-month to $1.657 trillion and was down 1.5% year-over-year, while public construction was down 0.5% month-over-month to $521 million and was up 3.5% year-over-year. Public nonres spending was down 0.4% month-over-month, with spending down in 10 of its 12 segments.