Construction Spending Dips in March

(Illustration 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.”