Skip to main content
June 1, 2023 - 12:42pm

Key Takeaways


Press Release from Associated Builders and Contractors: Nonresidential Construction Spending Increases in April Despite Recession Fears, Says ABC

WASHINGTON, June 1—National nonresidential construction spending expanded 1.9% in April, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.05 trillion.

Spending strength was broad-based, rising in 13 of the 16 nonresidential subcategories on a monthly basis. Private nonresidential spending was up 2.4% in April, while public nonresidential construction spending was up 1.1%.

“What recession?” said ABC Chief Economist Anirban Basu. “Despite a slew of headwinds, including higher interest rates, prominent bank failures, a near-miss debt ceiling crisis and pervasive fears of recession, money continues to flow into the U.S. nonresidential construction segment. Manufacturing-related construction spending growth continues to lead the way, but even segments that had been weak such as lodging are picking up steam.

“Contractors continue to complain about labor and skills shortages in the context of strong demand for their services,” said Basu. “It appears that the optimism that ABC contractors have been expressing about their prospects is proving justified. Backlog is stable and there is still evidence of significant pricing power, helping to support contractor profit margins. Moreover, public construction spending stands to remain strong even if the economy enters recession later this year, with considerable sums of money lined up to drive road, bridge and other work during the years ahead.

“While 2023 appears to be a solid year of growth for the nonresidential construction industry, 2024 remains far less certain,” said Basu. “The combined impacts of growing weakness in consumer spending, tightening credit conditions, lag effects associated with prior Federal Reserve rate increases and uncertainty stemming from high-stakes elections could eventually catch up to the broader economy and certain construction segments.”


Press Release from Associated General Contractors of America: Construction Spending Soars In April As Gains In Multifamily And Most Nonresidential Segments Outweigh Slump In Single-family Homebuilding

Construction Officials Caution that Growing Demand for Many Types of Projects Will Strain Already Tight Labor Conditions, Urge Federal Officials to Boost Construction Education Funding, Reform Immigration

WASHINGTON, June 1—Total construction spending in April increased by 1.2 percent from March and 7.2 percent year-over-year as widespread gains in nonresidential and multifamily construction spending offset a continuing plunge in single-family homebuilding, according to an analysis today by the Associated General Contractors of America of new federal data. Association officials welcomed the growth in demand for most types of construction but cautioned that firms will have a tough time finding enough workers amid tight labor conditions.

“Today’s report shows there has been no letup in most categories of construction despite worries about tighter credit and a possible slowdown in the broader economy,” said Ken Simonson, the association’s chief economist. “The top concern for most contractors is finding qualified workers, not projects to bid on.”

Construction spending, not adjusted for inflation, totaled $1.908 trillion at a seasonally adjusted annual rate in April, 1.2 percent above the March rate, which was revised up sharply from the initial estimate a month ago. The total exceeded the April 2022 rate by 7.2 percent.

Spending on private nonresidential construction increased 2.4 percent from March and 31.2 percent from a year earlier, the largest year-over-year gain in more than 15 years. Spending on public nonresidential construction increased by 1.1 percent in April and 16.8 percent over 12 months, the steepest year-over-year increase in the 30-year history of the data.

Nonresidential spending increased for the year in every category. The largest segment, manufacturing construction, jumped 8.6 percent in April and more than doubled over 12 months, rising 103.8 percent. Commercial construction—comprising warehouse, retail, and farm structures—climbed 0.7 percent for the month and 23.7 percent over 12 months. Highway and street construction rose 1.2 percent and 21.4 percent, respectively.

Private residential construction spending climbed 0.5 percent for the month but fell 9.2 percent for the year. Spending on new multifamily construction rose 0.6 percent from March and 24.9 percent from April 2022, the largest rise since 2016. But total residential spending was dragged down by single-family construction, which declined for the 12th month in a row, falling 0.8 percent from March and 24.7 percent from April 2022.

Association officials urged members of Congress and the Biden administration to work together to boost investments in construction training and education programs. They noted that construction careers pay well above the average job. They also urged federal officials to enact immigration reforms that will allow more people to lawfully enter the country and work in construction.

“It is encouraging to see growing public and private sector demand for construction,” said Stephen E. Sandherr, the association’s chief executive officer. “Federal officials can help make sure workers are prepared to take advantage of the many high-paying opportunities available to them in the construction sector.”

What Our Clients Say

"Beth is absolutely wonderful to work with! I appreciate her patience and professionalism. It’s a relief to know I can count on her to respond and be a life line for us as we continue to learn the system. She is truly top notch."

Eastbound Mechanical

"I wanted to let you know Dan did a great job. He has a vast amount of knowledge, and I feel very fortunate to be working with him."

H.F. (Mechanical Contractor)

"We appreciate Tim and all of his excellent support."

M.J. (Manufacturing Firm)

"Kristen is a very valuable resource for us!"

LCI-Lineberger Construction Inc.

"I want to let you know how grateful we are for Robert Pacheco’s assistance. He was able to meet with me and discuss the issue promptly and complete the fix within a short amount of time. He is surely an asset, and we are thankful to have such a great resource."

Marques General Engineering, Inc.

"Greg is terrific, and I’m so excited to have a better resource! I have him working on several projects now with many more to come."

Progressive Plumbing

"Michael and Matthew have exceeded my needs and expectations. I get help same day 95% of the time, which is very important in my business at times. They are professional and courteous 100% of the time. Zero complaints."

Mitchell Brothers

"It’s a pleasure working with Robert. He's very patient, knowledgeable and goes far beyond to help with any issues we have as a company or as an individual."

HL Contractors

"The level of service CDP provides is exceptional and always far exceeded my expectations. You can quote me on that!"

The Wesson Group LLC

"He did a great job online and an equally great job in person. We’re enjoying working with our new Spectrum Viewpoint accounting software."

Chambliss & Rabil Contractors, Inc.

"Thank you for your assistance/responsiveness to assist us in getting P6 back online so quickly today. We appreciate all the support you provide."

M.J. (Manufacturing Firm)