In November 2024, the total construction spending in the United States remained virtually unchanged from the previous month, standing at an estimated seasonally adjusted annual rate of $2,152.6 billion. This figure represents a 3.0% increase compared to the same period in 2023. The stability in overall spending masks underlying shifts between private and public sectors, with private construction showing a slight uptick while public spending experienced a minor decline. Year-over-year analysis reveals that private residential construction has risen by 3.1%, non-residential by 1.7%, and public spending by 4.6%. However, these figures were below market expectations, and revisions for the preceding months have been downward.

Private Sector Construction Shows Incremental Growth

The private sector witnessed a marginal rise in construction activities during November 2024. The seasonally adjusted annual rate for private construction reached $1,650.7 billion, marking a 0.1% increase from October's revised estimate. This growth is particularly notable given the broader economic context. Residential construction spending, though still 7.6% below its peak in 2022, showed resilience with a year-over-year increase of 3.1%. Meanwhile, non-residential construction spending, which was just 0.4% below its June 2024 peak, also demonstrated steady progress with a 1.7% year-over-year rise.

Despite these positive trends, the private sector's performance remains cautious. The slight improvement in residential spending suggests a gradual recovery, but it has yet to fully regain its pre-pandemic momentum. Non-residential construction, on the other hand, has shown more consistent growth, driven by investments in commercial and industrial projects. These developments indicate a cautious optimism within the private sector, as businesses and homeowners continue to adapt to evolving market conditions. However, challenges such as supply chain disruptions and labor shortages persist, which may temper further expansion in the near term.

Public Sector Construction Faces Minor Decline

In contrast to the private sector, public construction spending saw a slight decrease in November 2024. The seasonally adjusted annual rate for public construction stood at $501.9 billion, a 0.1% reduction from the revised October figure. While this dip is modest, it reflects ongoing budget constraints and shifting priorities in government infrastructure projects. Public spending remains 0.2% below its September 2024 peak, indicating a slower pace of investment in areas like transportation, education, and public utilities.

Year-over-year, public construction spending has increased by 4.6%, suggesting some level of recovery from earlier declines. However, this growth has been uneven, with certain regions and project types experiencing more robust activity than others. The slowdown in public spending can be attributed to several factors, including fiscal austerity measures and delays in securing funding for large-scale projects. Despite these challenges, there are signs of renewed interest in infrastructure development, especially in response to climate resilience and modernization needs. As policymakers reassess their priorities, the public sector's role in driving construction activity will likely evolve in the coming months.