Economy

Construction spending drops marginally in January

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

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.