01.05.202514:06:21UTC+00US Construction Spending Posts Surprise Drop

In March 2025, construction spending in the United States decreased by 0.5% compared to the previous month, reaching a seasonally adjusted annual rate of $2,196.1 billion. This decline followed a revised 0.6% increase in February, contradicting market expectations of a 0.2% gain. Within the private sector, spending fell by 0.6%, driven by a 0.8% decrease in non-residential investment and a 0.4% dip in residential expenditures. Public sector spending also saw a slight decline of 0.2%, mainly attributed to reductions in the non-residential category. Notable drops were observed in sectors such as power (-4.8%), commercial (-1.6%), and amusement and recreation (-1.0%), which overshadowed modest gains in the office (+1.6%) and transportation (+1.4%) sectors. Conversely, the residential sector experienced a marginal increase of 0.2%. On an annual basis, construction spending rose by 2.8% in March.