US March construction spending -0.5% vs 0.2% estimate

• Prior month 0.7% revised to 0.6%
• Construction spending -0.5% vs 0.2% estimate

Details from the Census Bureau:

Total Construction

• March 2025 spending: $2,196.1B, down -0.5% (±0.8%) from February’s $2,206.9B

• Up 2.8% (±1.2%) from March 2024’s $2,135.8B

• Year-to-date (Jan–Mar 2025): $485.7B, up 2.9% (±1.0%) from $472.2B in same period 2024

Private Construction

• Total private spending: $1,688.0B, down -0.6% (±0.5%) from February’s $1,697.7B

• Residential construction: $937.7B, down -0.4% (±1.3%) from $941.7B

• Nonresidential construction: $750.3B, down -0.8% (±0.5%) from $756.0B

Public Construction

• Total public spending: $508.1B, down -0.2% (±1.5%) from February’s $509.2B

• Educational construction: $110.0B, down -0.6% (±1.6%) from $110.6B

• Highway construction: $145.8B, down -0.5% (±5.6%) from $146.4B

Key Factors:

• Rising material costs, particularly in steel and copper, have increased construction input prices by 0.5% in March, contributing to project delays and cancellations.

• Tariff uncertainties have further strained the industry, leading to cautious investment and planning.

This article was written by Greg Michalowski at www.forexlive.com.