Nationwide nonresidential construction spending decreased by 0.1% in the month of November, according to an Associated Builders and Contractors (ABC) analysis of recent U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.23 trillion.

According to the ABC, private nonresidential spending went unchanged while public nonresidential construction spending was down by 0.2% in November. On a year-over-year basis, nonresidential construction spending is up 2.8% but remained nearly flat in "inflation-adjusted terms."

"Contractor confidence surged post-election," said the ABC’s Chief Economist Anirban Basu. "Many contractors expect a combination of deregulation and tax cuts to support greater activity and profitability going forward, including substantial investment in traditional energy sectors and manufacturing. Still, there are reasons for concern."

"Nonresidential construction spending momentum has all but disappeared, despite an ongoing boom in data center construction (up 43% year over year), largely because project financing costs remain elevated," Basu continues. "With inflation remaining stubbornly high and potentially accelerating going forward, interest rates stand to stay higher for longer. Prospective tariff increases threaten to push construction materials prices higher, and shifting immigration policies could expand future worker shortages. Only time will tell whether the recent upswing in optimism will prove justified."

The ABC analysis of November's construction input price data can also be found here.