U.S. construction spending in December 2024 rose by 0.5% from the previous month to a seasonally adjusted annual rate of $2.192 trillion, marking a 4.3% increase year-over-year. Private residential construction drove the gains, climbing 1.5% from November, while public construction spending dipped slightly by 0.5%, according to the U.S. Census Bureau.
Private residential construction remains a key driver, reaching an annualized $939.5 billion in December, 6% higher than a year ago. Within this category, new single-family construction grew by 1% month-over-month but remained slightly down year-over-year, reflecting the impact of elevated mortgage rates. New multifamily construction, which had been on a downward trajectory, continued its decline, falling 0.3% from November and 10.5% compared to December 2023. Image: U.S. Census Bureau
Nonresidential private construction showed little movement, edging up just 0.1% for the month but still maintaining a 2.3% annual increase. Among subcategories, manufacturing construction continued to outperform, up 11.4% from a year earlier, reflecting ongoing investment in industrial facilities.
Public construction spending declined 0.5% from November, though it remains up 4.3% year-over-year. A standout segment was public water supply projects, which surged 12.9% from a year earlier, alongside strong gains in sewage and waste disposal construction (up 10.4%). Meanwhile, highway and street construction rose just 0.7% month-over-month but was still down 5.1% compared to the same time last year.
