Key indicators for construction moved in a positive direction during May, but nearly every one of those economic reports highlighted the strength of data center projects and weakness in other areas.
Planning activity and groundbreakings picked up month over month in May, according to Dodge Construction Network. Contractors as a whole also tacked on more work to their books during the month, according to Associated Builders and Contractors. Meanwhile, job openings in the construction industry hit their highest level of the year during that span, according to the Bureau of Labor Statistics.
Yet, the rosy picture belongs more and more to contractors with exposure to the artificial intelligence buildout.
Though healthcare and infrastructure work have propped up activity in recent months, contractors still found the bulk of growth stems from AI-related construction, according to economic reports. The highest job opening level in 10-months likely reflects “exceptional demand” for certain roles critical for data center construction, said Anirban Basu, ABC chief economist.
Outside those builds, however, contractors reported tougher conditions.
Private nonresidential construction spending, for example, fell for a seventh consecutive month in May, according to U.S. Census Bureau data. At the same time, costs on construction sites aren’t getting any cheaper. Input prices climbed at their fastest annual pace in May since the pandemic, according to an Associated General Contractors of America analysis.
Read below for Construction Dive’s roundup of the latest economic data.
