Construction spending (not adjusted for inflation) fell for the third month in a row in April to $2.15 trillion at a seasonally adjusted annual rate, down 0.4% from March and 0.5% year-over-year (y/y), the Census Bureau reported today. The y/y decrease was the first since 2019. Private residential construction fell 0.9% for the month and 4.8% y/y, with single-family homebuilding down 1.1% for the month, multifamily construction down 0.1%, and owner-occupied improvements down 0.8%. Private nonresidential construction spending fell 0.5% for the month and rose just 1.0% y/y. The largest private nonresidential segments all declined for the month: manufacturing construction, -0.6%; power construction, -0.7%; commercial, -1.0% (comprising warehouse, -1.6%; retail and farm, -0.5% each); and “office” construction -0.2% (comprising data centers, 0.2%, and other, -0.4%). Public construction spending rose 0.4% for the month and 5.5% y/y. The top three public segments were mixed for the month: highway and street, up 0.5%; educational, down 0.1%; and transportation, up 0.7%.

Input prices for new nonresidential construction were unchanged in April, not seasonally adjusted, according to producer price index (PPI) data the Bureau of Labor Statistics posted on May 15. AGC posted PPI data for construction. Prices to calculate PPIs were collected around April 11, before most tariffs took effect. However, outsized one-month increases occurred in the PPIs for steel mill products, 5.9%, and aluminum mill shapes, 1.7%, possibly reflecting initial impacts of the 25% steel and alumni tariffs President Trump imposed on March 12. On Friday the President announced these tariffs will rise to 50% on June 4. The PPI for new nonresidential building construction—a measure of prices that contractors say they would bid to erect a fixed set of buildings—fell 0.4%. Readers are invited to send information about materials costs and project plans or cancellations to ken.simonson@agc.org. 

Seasonally adjusted construction employment rose y/y from April 2024 to April 2025 in 32 states and the District of Columbia, declined in 17 states, and was flat in Arkansas, according to AGC’s analysis of Bureau of Labor Statistics data posted on May 21. The most construction jobs were again added in Texas (32,000 or 3.8%), Ohio (20,500, 8.4%), and Florida (12,400, 1.9%). The largest percentage increases again occurred in New Mexico (15%, 7,700 jobs) and Idaho (8.8%, 6,200), followed by Ohio.  Washington lost the most construction jobs (-15,000, -6.6%), followed by California (-13,300, -1.5%), and New York (-7,700, -2.0%). Washington also had the largest percentage loss, followed by Montana (-4.8%, -1,800) and Massachusetts. For the month, 24 states added construction jobs, 24 states and D.C. lost jobs, and there was no change in New York and Indiana. California added the most jobs (6,300 or 0.7%), followed by Texas (4,900, 0.6%) and Virginia (4,300, 1.9%). Virginia had the largest percentage gain, followed by West Virginia (1.7%, 600) and Iowa (1.5%, 1,300). Washington lost the most jobs for the month (-3,300, -1.5%), followed by Pennsylvania (-1,800, -0.7%). Alaska had the largest percentage loss (-3.1%, -600), followed by Vermont (-1.8%, -300). (For D.C., Delaware, Hawaii, and most metros, BLS posts combined totals for mining, logging, and construction; AGC treats the changes as all from construction.)

Construction employment, not seasonally adjusted, rose y/y from April 2024 to April 2025 in 194 (51%) of the 360 metro areas (including divisions of larger metros) for which BLS posts construction employment data, fell in 120 (33%), and was flat in 56, according an analysis AGC released on Wednesday. The largest job gains again occurred in the Arlington-Alexandria-Reston, Va.-W.Va. division (7,700 combined jobs or 9%), followed by the Dallas-Plano-Irving division (5,300 combined jobs, 3%) and Cincinnati, Ohio-Ky.-Ind. (4,800 combined jobs, 9%). The largest percentage gain occurred in Las Cruces, N.M. (19%, 800 combined jobs), followed by New Orleans-Metairie (15%, 3,500 construction jobs). The largest loss occurred in Riverside-San Bernardino-Ontario, Calif. (-6,000 construction jobs, -5%), followed by the Los Angeles-Long Beach-Glendale division (-5,900 combined jobs, -4%). The largest percentage loss again was in Monroe, Mich. (-20%, -500 combined jobs), followed by Fairbanks-College, Alaska (-10%, -300 construction jobs). 

Two construction data providers posted partially contrasting results for April. The value of construction starts, not seasonally adjusted, rose 3.4% from March to April but declined 6.6% year-to-date (YTD) in the first four months of 2025 compared to January-April 2024, ConstructConnect reported on May 15. Nonresidential building starts rose 9.9% for the month but dipped 0.5% YTD. Civil starts rose 15% and 7%, respectively. Residential starts tumbled 11% and 18%, respectively. Total starts fell 9% from March to April at a seasonally adjusted annual rate and 3% YTD, Dodge Construction Network reported on May 21. Nonresidential building starts declined 3% and 10%, respectively; residential starts fell 4% and 5%, while nonbuilding starts decreased 22% for the month but were up by 8% YTD.

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