Public Investment Climbs While Private Market Declines Weigh Down 2025 Totals
Recently, the U.S. Census Bureau released the results of its monthly Value of Construction Put in Place Survey. The survey provides estimates of the total dollar value of construction work done in the U.S. This data includes design and construction spending for public and private projects.
Due to the government shutdown in October 2025, the data released in February 2026 includes the preliminary figures for November and December 2025.
The seasonally adjusted annual rate of $2.17 trillion for December 2025 represents a monthly increase of 0.3%, and a year- over-year decline of -0.4%. This represents an improvement from the industry declines in the spring and an increase of 0.9% since the May 2025 low of $2.15 trillion. Given all the volatility throughout 2025, the end-of-year numbers reflect the diversity of the underlying markets segments that make up the entire construction industry and their ability to grow independently of each other.
The year-to-date decline is driven by weakness in private construction, notably the residential, commercial and manufacturing sectors. Total private construction is down -1.5% year over year at $1.65 trillion while public construction is up 3.5% at $522 billion.
Source: U.S. Census Bureau Value of Construction Put in Place Survey February 27, 2026 release
The modest decrease in growth highlights the continued uncertainty of the current economic climate. After beginning the year with a contraction in real GDP growth in the 1st quarter of 2025 of -0.5%, the advanced estimate for the 4th quarter US GDP growth is 1.4%.
Factors such as higher for longer interest rates, changes in fiscal policy, trade uncertainty and other economic conditions are impacting markets to varying degrees. The residential market has improved the past few months, with 1.5% month- over-month growth while the nonresidential market declined -0.6%.
Source: U.S. Census Bureau Value of Construction Put in Place Survey February 27, 2026 release
With respect to year-to-date growth in individual markets, 2025 represented a shift away from sectors that previously lead growth coming out of the COVID-19 pandemic. The Water sector continues to grow in both Supply and Sewage & Waste Disposal, while growth in Amusement & Recreation remains strong and Public Safety is a top growth market as well.
With the most recent update, 7 out 17 sectors have year-to-date declines in total spending. Commercial continues to see declines due to interest rate sensitivity and other secular trends affecting demand. The Residential sector is seeing declines after rebounding from Spring 2023 lows, while Manufacturing is now seeing declines after significant growth during 2022-2024.
