Construction Economics Brief - August 2023
The Construction Economics Brief produced by ConstructConnect’s economics team is a monthly video series with brief and pertinent construction...
ConstructConnect reported today in the Construction Economy Snapshot that the December 2024 volume of Total Nonresidential construction starts — the sum of Nonresidential Building and Heavy Engineering — was $44.4 billion, an increase of $6.3 billion, or 16.7%, when compared to an upward revised November reading of $38.0 billion.
Total US Construction Starts
Chief Economist Michael Guckes, the report’s author, said, “November and December’s results were particularly weak, representing the slowest two-month period since late 2021.”
December’s total US Construction spending, the combined total of Nonresidential and Residential Starts, was $62.2 billion.
Total construction spending was up 9.2% compared to November, although total spending in 2024 amounted to $942.7 billion, a 3.5% drop from a year prior.
Industry leaders will need to take a more nuanced view of the construction sector in 2025.
Michael Guckes, Chief Economist, ConstructConnect
The fourth quarter of the year was underwhelming. Total US construction spending was just $202 billion, a decline of 18.5% from 4Q2023.
Guckes, who also authors the quarterly Construction Starts Forecast, said, “Industry leaders will need to take a more nuanced view of the construction sector in 2025.”
For example, Guckes pointed to two categories that continue to capture headlines and attract large construction budgets.
December 2024 Total US Construction Starts. Image: ConstructConnect
He added, “Select subcategories of the construction market are poised for further gains thanks to demand for data centers and power infrastructure and a continuance of megaprojects.”
According to Chief Economist Michael Guckes, 2024 spending by construction category varied widely. Image: ConstructConnect
Nonresidential Building (NRB)
The industry’s nonresidential building (NRB) segment ended 2024 “uninspired,” Guckes said. “With total 2024 starts of $377.4 billion, down $35.2 billion, or 9.3%, from the comparable period a year ago. “
Michael Guckes, Chief Economist, ConstructConnect
Among the 25 verticals, or subcategories, that comprise NRB spending, eight reported 10% spending growth in 2024, while another seven reported less than 10% growth.
December 2024 Total Nonresidential Building Starts. Image: ConstructConnect
Four subcategories in 2024 saw spending shrink year-on-year, totaling $66 billion: Retail/Shopping, Manufacturing, Warehousing, and Military.
Read the Construction Economy Snapshot for more details on construction labor, trend graphs, and regional analysis.
About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.