Nonresidential Construction Spending Decline

ongoing

Nonresidential construction spending in the U.S. slipped 0.2% in July 2025 to a seasonally adjusted annual rate of $1.24 trillion. Private nonresidential outlays dropped 0.5%, while public nonresidential construction increased by 0.3%. Spending decreased in seven of 16 nonresidential categories, including manufacturing and commercial work. The decline marks the third straight monthly decrease, influenced by rising tariffs and labor shortages, with private nonresidential activity declining 3.7% over the past year. Public nonresidential spending increased 3.1% over the past 12 months, cushioning the overall pullback.