The 1.6% gain in nonresidential construction spending in January meant that the total outlay hit a record high of $806.9 billion for the month according to an analysis of the U.S. Census Bureau's data by Associated Builders and Contractors. In addition, that number is up 5.1% on a year-ago basis.

 

By sector, private nonresidential spending increased 0.8% for the month and is up 0.5% compared to the same time last year. Public nonresidential construction spending rose 2.6% in January, which is 12.3% growth on a year over year basis.

"Despite all the focus on the dislocating impacts of the coronavirus, construction - a key element of the U.S. economy - continues to perform," said ABC chief economist Anirban Basu. "For the first time in history, the volume of nonresidential construction spending exceeded $800 billion on an annualized basis and now stands at an all-time high. Both public and private nonresidential construction spending expanded to start 2020, a reflection of the broader economic momentum evident over the last several years. Backlog remains healthy, according to the ABC Construction Backlog Indicator, and with the nation continuing to add jobs, there is more demand for public and private construction and additional funding resources. This is especially apparent in several infrastructure categories, in which spending growth continues to be robust due to healthier state and local government finances."