U.S. Construction Spending Down 1.6% as Private Sector Weakens
Recently, the US Census 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, the data from the original October 1, 2025, release was delayed until November 17th. It is unclear if the data for the November 1 release will be released retroactively.
The seasonally adjusted annual rate of $2.17 trillion for August 2025 represents a monthly increase of 0.2%, and a year-over-year decline of -1.6%. This represents an improvement of previous month declines, and an increase of 0.9% since the May 2025 low of 2.15 trillion.
These year-to-date declines are driven by weakness in private construction, notably the residential and commercial sectors. Total private construction is down -2.9% year over year at $1.65 trillion, while public construction is up 2.7% at $517 billion.
Source: US Census Value of Construction Put in Place Survey November 17, 2025 release
This decrease in growth highlights the continued uncertainty for the current economic climate. After a contraction in real GDP growth in the 1st quarter of 2025 of -0.5%, the 2nd quarter GDP was revised up to 3.8%.
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 0.8% month- over-month growth, while the nonresidential market declined -0.2%.
Source: US Census Value of Construction Put in Place Survey November 17, 2025 release
With respect to year-to-date growth in individual markets, 2025 continues a shift away from sectors that previously lead growth. 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, 6 out of 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.
