Construction spending declines

April’s total U.S. construction spending slid 0.4% from the prior month, with declines reported for both residential and nonresidential projects, according to the latest Commerce Department figures. The latest number for total spending was also 0.5% lower than a year earlier at a time of uncertainty for builders related to financing and material costs. 

The government said developers in April were on pace to spend about $2.1 trillion in the year, based on seasonally adjusted numbers. Private residential spending was down 0.9% from the prior month as nonresidential spending declined 0.5%.

“Construction spending slipped in April as headwinds like trade policy uncertainty, high interest rates and tight lending standards continued to batter industrywide momentum,” Anirban Basu, chief economist for the Associated Builders and Contractors, said in a statement.

The trade group said spending declined for the month in six of 16 tracked nonresidential categories, as its national survey found nearly 22% of contractors reported tariff-related project delays or cancellations during April. Private nonresidential spending has fallen in three of the first four months of 2025 and is on pace to decline 4% for the full year, Basu said.