National nonresidential construction spending saw a modest rise of 0.1% in July, according to a new analysis by the Associated Builders and Contractors (ABC) of U.S. Census Bureau data. When adjusted for seasonality on an annualized basis, nonresidential spending stood at $1.08 trillion, marking a 16.5% increase from the previous year.

The report found that of the 16 nonresidential subcategories, eight recorded an uptick in spending on a month-over-month basis. Private nonresidential spending showed an increase of 0.5%, while public nonresidential construction spending saw a decline of 0.4%.

“After today’s jobs report, which indicated that nonresidential construction added an outsized number of jobs in August, one would have expected a strong construction spending growth number as well,” said ABC Chief Economist Anirban Basu in a statement. “Alas, the economic data, just like the economy, continue to be full of surprises. In July, nonresidential construction spending barely expanded. Once one adjusts for inflation, spending declined in real terms.”

According to the analysis, construction spending weaknesses were not concentrated in the private sector but in public construction segments. Basu cited declines in spending for highway and street construction, sewage infrastructure, and conservation/development categories as all contributing to the slowdown.

“Since nonresidential construction hiring was strong last month, the expectation is that July’s construction spending number will prove to be an aberration,” Basu added. “Spending growth should be solid going forward, driven in large measure by several massive construction projects in development or early construction stages. That said, those segments that depend most on bank financing are poised to weaken going forward.”