WASHINGTON, Sept. 1 — National nonresidential construction spending increased 0.1% in July, according to data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.286 trillion.

Meanwhile, the U.S. construction industry reported 326,000 job openings on the last day of July, according to the monthly U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Specifically, industry job openings increased by 28,000 in July and are up by 21,000 from the same time last year.

"The construction job opening rate rose to the highest level in nearly two years in July,” said ABC Chief Economist Anirban Basu. “Contractor hiring also accelerated for the month, while layoff activity slowed. This meaningful improvement in labor demand is a function of insatiable demand for data centers and the accompanying strength in power-related construction."

“With contractors broadly optimistic about expanding their staffing levels over the next six months, according to ABC’s Construction Confidence Index, it’s possible that reemerging worker shortages will put upward pressure on labor costs over the next several months.”

Returning to construction spending, that national measure was down on a monthly basis in 8 of the 16 nonresidential subcategories. Private nonresidential construction spending was up 0.4%, while public nonresidential spending was down 0.2% in July.

“The increase in nonresidential construction spending that occurred in July was entirely due to data centers,” said ABC's Basu. “Excluding that booming category, nonresidential spending fell for the second straight month and is down to the lowest level since September 2023.

“Nonresidential activity is even more concentrated given that the power category, which has been boosted by the electricity needs of data centers, has also grown substantially over the past year,” he added. “While contractors remain upbeat about their sales over the next six months, according to (the CCI Index), that upbeat outlook is increasingly dependent on a single sector.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and 24,000 members. Founded on the merit shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.