Tariff worries trigger major drop in U.S. construction spending

Posted on May 6, 2025   |  

Nonresidential construction spending fell by 0.5% in March, hitting an annualized rate of $1.25 trillion, down from February’s all-time high.

Out of 16 nonresidential sectors, 11 saw declines, with private construction dropping 0.8% and public construction down 0.2%.

The sharp drop signals a pullback after strong growth in February, especially in private nonresidential projects.

Despite the monthly dip, public nonresidential construction spending remains up 4.8% year over year.

In contrast, private nonresidential spending has only increased 1.6% compared to March last year.