Economy

Construction spending drops marginally in January
Written by David Schollaert
March 4, 2025
Construction spending edged down slightly in January, slipping for the first time in four months.
The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago.
January’s result, despite the slight erosion, remains the second-best total in over five years, according to Census data.
Private builds
Overall, private construction outlays were $1,686 billion at a seasonally adjusted annual rate. That’s about 0.2% below the revised December estimate, the report said. Residential construction spending slipped 0.4% month over month to $932.7 billion, while nonresidential construction outlays were virtually flat at $53.3 billion in January.
Public projects
Public construction spending edged 0.1% lower in January to $505.9 billion. Highway construction contributed to the gain, improving 0.6% to $145 billion in January, while educational construction lagged, slipping 0.4% to $109.8 billion.
The chart below shows a rise in spending in recent years, particularly in nonresidential investment.


David Schollaert
Read more from David SchollaertLatest in Economy

Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them

ISM: Manufacturing expansion loses steam after two months of growth
US manufacturing activity slowed in March after two straight months of expansion, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Chicago Business Barometer rose to 16-month high in March
The Chicago Business Barometer increased for the third-consecutive month in March. Despite this, it still reflects contracting business conditions, as it has since December 2023.

Durable goods orders rise again in February
Transportation equipment led the increase, rising 1.5% to $98.3 billion.

Consumer confidence falls for fourth consecutive month
People remain concerned about inflation, trade policies, and tariffs.