ACEC Market Insights: What’s Driving the Industry

Recently, the US Census released the results of its monthly Value of Construction Put in Place Survey.

• By the numbers: The survey provides estimates of the total dollar value of construction work done in the U.S. This data includes design and construction spending for public and private projects.

• With an estimate of $2.1 trillion (seasonally adjusted) for December 2023, this is the 13th consecutive month where construction spending rose, beginning in December 2022.

Source: US Census Value of Construction Put in Place Survey February 1, 2024, release

Total Construction spending growth continues to be strong. Nominal values are still at all-time highs with 13.9% year-over-year growth (seasonally adjusted).

• MoM growth is 0.4%, a decrease from last month’s revised 1.2%

• Spending growth continues to vary by project classification

• Year to Date spending growth on Public Construction projects is significantly higher at 15.8% compared to Private Construction at 4.7%

• Ten project classifications saw negative MoM declines

Nonresidential spending ends year strong

• Nonresidential project classifications grew at 20.1% YOY, an increase from last month’s 18.1%

• Total nonresidential saw MoM growth at 0.4% compared to last month’s -0.1%

Source: US Census Value of Construction Put in Place Survey, February 2024, release

We can point to fiscal policy and subsequent private investment in sectors like manufacturing, and wastewater as supporting these high growth levels, while the residential sector continues its rebound. Compared to previous month’s, the Total Power (up 11.2% YTD) & Total Public Safety (up 13.7% YTD) sectors continue to grow and are no longer “bottom” growth categories, spurred by increased Government spending in these categories.