Overall nonresidential construction spending fell 0.8% in December 2020, on a monthly basis, according to a study done by Associated Builders and Contractors (ABC) published by the U.S. Census Bureau.
The decline continues a trend seen over the past several months. Year-over-year, spending fell 4.8% lower than December 2019, seasonally adjusted.
Private nonresidential construction spending fell 1.7% in December, on a monthly basis, while public spending rose 0.5%. On a yearly basis, private work declined 9.8%, with public nonresidential spending increasing 2.5%.
Sewage and waste disposal, highway and street, and educational construction were among the sectors experiencing both monthly and yearly increases, while markets such as amusement and recreation, healthcare and lodging declines in the same time periods.
“While it is true that the broader economy is poised for rapid economic recovery later this year, nonresidential construction is positioned to lag,” said ABC Chief Economist Anirban Basu in a press release.
Without a federal stimulus, “many nonresidential construction firms and their workers will face a period of vulnerability," added Basu.