According to the U.S. Census Bureau, construction spending during March 2025 was estimated at a seasonally adjusted annual rate of $2,196.1 billion, 0.5% (±0.8%) below the revised February estimate of $2,206.9 billion. The March figure is 2.8% (±1.2%) above the March 2024 estimate of $2,135.8 billion. During the first three months of this year, construction spending amounted to $485.7 billion, 2.9% (±1.0%) above the $472.2 billion for the same period in 2024.
Spending on private construction was at a seasonally adjusted annual rate of $1,688.0 billion, 0.6% (±0.5%) below the revised February estimate of $1,697.7 billion.
- Residential construction was at a seasonally adjusted annual rate of $937.7 billion in March, 0.4% (±1.3%) below the revised February estimate of $941.7 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $750.3 billion in March, 0.8% (±0.5%) below the revised February estimate of $756.0 billion.
In March, the estimated seasonally adjusted annual rate of public construction spending was $508.1 billion, 0.2% (±1.5%) below the revised February estimate of $509.2 billion.
- Highway construction was at a seasonally adjusted annual rate of $145.8 billion, 0.5% (±5.6%) below the revised February estimate of $146.4 billion.
- Educational construction was at a seasonally adjusted annual rate of $110.0 billion, 0.6% (±1.6%) below the revised February estimate of $110.6 billion.
“Construction spending retreated in March, as media reports and corporate announcements suggest owners are hesitant to start new projects in light of uncertainty over tariffs, government funding,and other policy upheavals,” stated Ken Simonson, chief economist of the Associated General Contractors of America. “Spending has slowed over the past year and as current projects wind down, there may be several months of declining construction activity.”
Association officials said that the Trump administration’s focus on expediting federal reviews and permitting should help accelerate public-sector construction activity as many large-scale projects move from the approval to the construction phase. They added that they were working with the administration to explore ways to mitigate the impacts of tariffs on many key construction materials.
“Federal officials are moving to complete key reviews and issue permits for vital infrastructure projects in a more-timely way, which should help boost public-sector demand for construction,” said Jeffrey H. Shoaf, the association’s chief executive officer. “Finding ways to eliminate uncertainties and keep prices from escalating during trade disputes will also help boost private-sector demand.”