Non-residential work “failed to gather momentum” in October, noted Anirban Basu, chief economist at the Associated Builders and Contractors. “While there are few sources of private nonresidential growth outside of the still-surging data center category, much of the recent decline in construction spending is due to a precipitous drop in manufacturing investment,” he said, adding that “with CHIPS Act-enabled megaprojects winding down and the stiff headwind of trade policy, manufacturing construction spending has fallen by nearly 10% over the past 12 months, accounting for more than the entire decline in private nonresidential spending.”

Manufacturing experienced the sharpest decrease, year-over-year, at 9.6%, while commercial and education sector spending dropped 2.3% and 1.5%, respectively.

Jeffrey D. Shoaf, CEO of the Associated General Contractors of America, noted that options are available to federal officials to “encourage more construction activity while making the economy more productive,” suggesting actions such as “cutting red tape, making go or no-go decisions more quickly and continuing to invest in vital infrastructure will boost employment, stimulate new economic activity and make the American economy even more competitive.”