Nonresidential construction spending decreased 0.1% from March to April and is up 2.8% compared with April 2024, according to Associated Builders and Contractors.
For public construction, spending increased 0.5% for the month and is up 5.6% year to date. Private nonresidential spending decreased 0.5% from March to April and is up 1% year to date. Spending was down for the month in six of the 16 nonresidential subcategories.
“Construction spending slipped in April as headwinds like trade policy uncertainty, high interest rates and tight lending standards continued to batter industrywide momentum,” said ABC Chief Economist Anirban Basu. “Nearly 22% of contractors reported tariff-related project delays or cancellations in April, and despite changes to certain import tax rates in May, policy uncertainty remains extraordinarily elevated.
“With the exception of data centers and certain public sector segments, the industry has few bright spots at the moment,” Basu continued. “Private nonresidential spending has fallen in three of the first four months of 2025 and is on pace to decline 4% for the year. This is especially concerning given a nearly 10% year-over-year decline in computer/electronic manufacturing construction spending, the segment that bolstered the industry throughout much of 2023 and 2024.”
