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
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