Spending on nonresidential construction dropped by 0.1% in November in a reversal of a 17-month growth period for the sector, according to an analysis of new U.S. Census Bureau data from the industry group Associated Builders and Contractors (ABC).

The total amount of spending in the sector was $1.143 trillion. Spending on a monthly basis was down in 11 of the 16 nonresidential subcategories. Private nonresidential spending increased by 0.2%, while public nonresidential construction spending fell 0.6% for the month.

“Nonresidential construction spending dipped in November due to a 0.6% decline in public-sector activity,” said ABC’s Chief Economist Anirban Basu. “Despite the monthly setback, spending is up an impressive 18.1% over the past year, with the gains evenly distributed between the public and private sectors, and currently sits just below the all-time high established in October.”

“Manufacturing-related construction continues to surge and now accounts for roughly 45% of the year-over-year increase in nonresidential spending,” Basu continued. “Other predominantly privately financed segments have posted impressive growth in 2023, with educational, health care and power construction all up significantly over the past 12 months, while certain publicly financed categories like highway and street and sewage and waste disposal have also posted strong year-over-year performances. With only 24% of contractors expecting their sales to decline over the next six months, according to ABC’s Construction Confidence Index, the industry appears set to carry momentum into the new year.”