Construction Spending Dips in March

(Photo above courtesy of Kampus Production via pexels.com. Illustration below courtesy of Census Bureau)

Construction spending dipped during March, the U.S. Census Bureau reported Thursday.

The Census Bureau said construction fell to a seasonally adjusted annual rate of $2,196.1 billion, 0.5% below its revised February estimate of $2,206.9 billion.

“During the first three months of this year, construction spending amounted to $485.7 billion, 2.9% above the $472.2 billion for the same period in 2024,” Census said in a statement.

The March figure is 2.8% above the March 2024 estimate of $2,135.8 billion.

In its analysis, Wells Fargo Economics said both residential and nonresidential spending slipped in March. “Residential construction spending registered its first slip in six months, largely driven by a drop in home improvement outlays. Single-family outlays also showed signs of waning momentum,” the report said. “If a silver lining can be gleaned, it is that multifamily construction appears to be stabilizing following a year-long downdraft, reflecting persistent affordability challenges facing single-family homebuyers.”

Wells Fargo Economics noted tariff-driven increases in materials prices and broader economic headwinds “stand to constrain overall construction spending in the year ahead.”