According to the U.S. Census Bureau, construction spending during February 2025 was estimated at a seasonally adjusted annual rate of $2,195.8 billion, 0.7% (±0.8%) above the revised January estimate of $2,179.9 billion. The February figure is 2.9% (±1.3%) above the February 2024 estimate of $2,133.8 billion.
During the first two months of this year, construction spending amounted to $311.1 billion, 2.1% (±1.2%) above the $304.8 billion for the same period in 2024.
In February, the estimated seasonally adjusted annual rate of public construction spending was $509.3 billion, 0.2% (±1.8%) above the revised January estimate of $508.1 billion.
- Highway construction was at a seasonally adjusted annual rate of $147.2 billion, 1.2% (±6.7%) above the revised January estimate of $145.4 billion.
- Educational construction was at a seasonally adjusted annual rate of $110.8 billion, 0.3% (±2.3%) above the revised January estimate of $110.4 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,686.4 billion, 0.9% (±0.7%) above the revised January estimate of $1,671.8 billion.
- Residential construction was at a seasonally adjusted annual rate of $928.9 billion in February, 1.3% (±1.3%) above the revised January estimate of $917.1 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $757.5 billion in February, 0.4% (±0.7%) above the revised January estimate of $754.8 billion.
“Construction spending rebounded in February, following widespread severe weather that may have slowed projects in January,” said Associated General Contractors of America Chief Economist Ken Simonson. “Investment remains positive compared to a year ago but the growth rate for all major categories has cooled, while contractors have trimmed hiring and slashed job openings.”
Association officials said they were working with the Trump administration and Congress to explore ways to reduce regulatory burdens and limit the time it takes to greenlight work on new infrastructure and other economic development projects. They noted that cutting red tape could help boost activity levels for many types of publicly funded construction projects.
“Nonresidential spending rebounded in February, rising to the highest level on record,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “A surge in highway and street spending accounted for more than 40% of the monthly increase, and public sector nonresidential spending is now up more than 6% on a year-over-year basis. Unfortunately, private sector spending has not kept pace and is up just 2.5% since last February, a rate of increase slower than economy wide inflation.
“The mix of high interest rates, tight lending standards and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months,” said Basu. “Despite these ongoing headwinds and the expectation that materials prices will rise as tariffs are implemented, contractors remain optimistic about their prospects over the next six months, according to ABC’s Construction Confidence Index.”