Total Construction

Construction spending during June 2025 was estimated at a seasonally adjusted annual rate of $2,136.2 billion, 0.4 percent (±0.8 percent)* below the revised May estimate of $2,143.9 billion. The June figure is 2.9 percent (±1.5 percent) below the June 2024 estimate of $2,199.8 billion. During the first six months of this year, construction spending amounted to $1,036.1 billion, 2.2 percent (±1.0 percent) below the $1,058.9 billion for the same period in 2024.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,621.9 billion, 0.5 percent (±0.5 percent)* below the revised May estimate of $1,630.2 billion. Residential construction was at a seasonally adjusted annual rate of $883.1 billion in June, 0.7 percent (±1.3 percent)* below the revised May estimate of $889.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $738.8 billion in June, 0.3 percent (±0.5 percent)* below the revised May estimate of $741.1 billion.

Public Construction

In June, the estimated seasonally adjusted annual rate of public construction spending was $514.3 billion, 0.1 percent (±1.6 percent)* above the revised May estimate of $513.7 billion. Educational construction was at a seasonally adjusted annual rate of $112.7 billion, 0.4 percent (±2.6 percent)* above the revised May estimate of $112.2 billion. Highway construction was at a seasonally adjusted annual rate of $144.1 billion, 0.6 percent (±4.8 percent)* above the revised May estimate of $143.2 billion.

ABC –  Construction Employment Growth Anemic in July The construction industry added 2,000 jobs on net in July, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 96,000 jobs, or 1.2%. Nonresidential construction employment increased by 6,400 positions on net, with growth in 2 of the 3 subcategories. Heavy and civil engineering added 6,000 jobs, while nonresidential specialty trade added 1,900 new positions. Nonresidential building lost 1,500 jobs for the month. The construction unemployment rate remained unchanged at 3.4% in July. Unemployment across all industries rose from 4.1% in June to 4.2% last month. “The construction industry has added just 7,000 jobs over the past four months,” said ABC Chief Economist Anirban Basu. “Industrywide employment is up only 1.2% over the past year, a lackluster pace of growth that historically is seen during and immediately following recessions. The good news for ABC members is that the nonresidential segment continues to outperform, growing at twice the pace of the industry at large over the past 12 months. Given that ABC member backlog remains healthy and hiring expectations remain relatively optimistic, according to ABC’s Construction Backlog Indicator, it’s possible that weakness will be confined to the residential side of the industry during the second half of 2025.”

Construction Hiring Remains Subdued in June The construction industry added 2,000 jobs on net in July, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 96,000 jobs, or 1.2%. Nonresidential construction employment increased by 6,400 positions on net, with growth in 2 of the 3 subcategories. Heavy and civil engineering added 6,000 jobs, while nonresidential specialty trade added 1,900 new positions. Nonresidential building lost 1,500 jobs for the month. The construction unemployment rate remained unchanged at 3.4% in July. Unemployment across all industries rose from 4.1% in June to 4.2% last month. “The construction industry has added just 7,000 jobs over the past four months,” said ABC Chief Economist Anirban Basu. “Industrywide employment is up only 1.2% over the past year, a lackluster pace of growth that historically is seen during and immediately following recessions. The good news for ABC members is that the nonresidential segment continues to outperform, growing at twice the pace of the industry at large over the past 12 months. Given that ABC member backlog remains healthy and hiring expectations remain relatively optimistic, according to ABC’s Construction Backlog Indicator, it’s possible that weakness will be confined to the residential side of the industry during the second half of 2025.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

ABC: Construction Backlog Indicator Rises, Contractor Optimism Slips in July

Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to 8.8 months in July, according to an ABC member survey conducted July 24 to Aug. 4. The reading is up 0.4 months since July 2024. View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for July. View the full Construction Backlog Indicator and Construction Confidence Index data series. Backlog is up on a year-over-year basis in every region except for the South. Despite the lack of growth, backlog in the South remains significantly longer than in any other region. ABC’s Construction Confidence Index reading for sales and profit margins declined in July, while the reading for staffing levels rose to the highest level since April. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months. “Backlog continued to rise in July despite the ongoing decline in construction spending,” said ABC Chief Economist Anirban Basu. “Some of that strength can be attributed to the fact that 1 in every 8 ABC members is currently under contract to perform work on a data center project. Backlog in the infrastructure category has also increased considerably over the past year, and public construction activity has outperformed the private sector over the past several months. “While backlog rose, contractor confidence slipped in July, especially with regards to profit margins,” said Basu. “Fewer than 2% of ABC members expect their profit margins to increase significantly over the next six months, the fewest since October 2024. This is likely due to trade policy and the recent acceleration in materials price escalation; more than 80% of ABC members have been notified of tariff-related price increases.”

AGC

Costs Accelerate Again In July For Nonresidential Construction Materials As Tariff Drive Up Prices For Aluminum, Steel And Copper Items

Largest Increase in Two and a Half Years Comes as Construction Officials Urge Administration to Finalize Negotiations with Key Trading Partners to Ease Punitive Tariffs Levels that Went into Effect This Year

The producer price index for materials and services used in nonresidential construction rose 0.5 percent in July and 2.6 percent from July 2024, the largest 12-month increase since February 2023, according to an analysis by the Associated General Contractors of America of government data released today. Association officials urged the Trump administration to quickly resolve outstanding trade negotiations and ease the punitive tariff levels put in place with many U.S. trading partners.

“Steep tariff increases earlier this year on aluminum and steel, along with a more recent tariff on raw copper, drove the producer price index for construction inputs higher for the third-straight month,” said Ken Simonson, the association’s chief economist. “Even though contractors do not generally import materials directly, it is clear that domestic producers are raising prices in line with the protection tariffs are providing them.”

Simonson noted that tariffs on steel and aluminum were hiked to 50 percent on July 4 from the 25 percent rate that took effect on March 12, while a 50 percent tariff on raw copper took effect on August1. In addition, tariffs on most imports from almost all the nations that supply vital construction materials took effect in early August, making further increases in construction costs likely over the next few months.

Three major construction inputs contributed to the acceleration in year-over-year costs. The producer price index for aluminum mill shapes jumped 7.4 percent last month and 13.7 percent from July 2024. The index for steel mill products slipped 0.5 percent in July but still climbed by 8.8 percent over 12 months. The index for copper and brass mill shapes rose 5.7 percent for the month and 6.9 percent year-over-year.

Association officials said contractors were being squeezed by rising materials prices at a time when demand for some private-sector projects has slackened amid higher interest rates and market uncertainty. They noted that finalizing trade deals and lowering tariffs rates would help ease some of the market uncertainty and rising materials prices that are having an impact on the construction sector.

“This administration has acted quickly to craft trade agreements with many trading partners, but several outstanding deals are leaving contractors saddled with higher materials prices as tariff levels remain high,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “This administration can help address higher materials prices and broader market uncertainty by quickly finalizing remaining trade negotiations.”

View producer price index data.