According to the U.S. Census Bureau, construction spending during May 2025 was estimated at a seasonally adjusted annual rate of $2,138.2 billion, 0.3% (±0.8%) below the revised April estimate of $2,145.5 billion.
The May figure is 3.5% (±1.3%) below the May 2024 estimate of $2,215.4 billion. During the first five months of this year, construction spending amounted to $841.5 billion, 2.1% (±1.0%) below the $859.6 billion for the same period in 2024.
In May, the estimated seasonally adjusted annual rate of public construction spending was $511.6 billion, 0.1% (±1.5%) above the revised April estimate of $511.3 billion.
- Highway construction was at a seasonally adjusted annual rate of $143.2 billion, 0.3% (±4.6%) below the revised April estimate of $143.7 billion.
- Educational construction was at a seasonally adjusted annual rate of $111.8 billion, 0.2% (±2.1%) above the revised April estimate of $111.6 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,626.6 billion, 0.5% (±0.5%) below the revised April estimate of $1,634.2 billion.
- Residential construction was at a seasonally adjusted annual rate of $888.9 billion in May, 0.5% (±1.3%) below the revised April estimate of $893.7 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $737.7 billion in May, 0.4% (±0.5%) below the revised April estimate of $740.6 billion.
“Uncertainty about tariffs, tax rates and labor availability are making it hard for many developers to risk moving forward with planned construction projects,” said Ken Simonson, chief economist of the Associated General Contractors of America. “While public sector demand remains solid, it just isn’t enough to offset the private sector pullbacks in activity.”
Association officials urged Congress and the Trump Administration to help eliminate the market uncertainties that are prompting the private sector pullback. This includes passing legislation to avoid a large tax increase on construction firms and other sectors of the economy. And it includes resolving the trade disputes that are prompting the proposed tariffs. And they called for new investments in construction education and training and more ways for people to enter the country lawfully to work in construction.
“The more certainty there is in the market, the more likely private sector developers will greenlight planned construction projects,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Washington officials can help provide that certainty by setting clear tax rates, resolving trade disputes and addressing significant construction labor shortages.”