Construction spending rises; GM sales increase as Ford slips; Office attendance edges higher

Total U.S. construction spending rebounded from recent declines in February, led by single-family homebuilding, according to the latest Commerce Department numbers.

The government Tuesday said residential and nonresidential spending topped $2.1 trillion, based on seasonally adjusted annual figures. That marked a 0.7% increase from January’s revised figure and a 2.9% rise from February 2024.

“Housing rebounded from severe winter weather with single-family homebuilding in the driver’s seat in February,” Oxford Economics Lead U.S. Economist Bernard Yaros said in a statement Tuesday. “Similarly, private nonresidential construction more than recouped its losses from the beginning of the year.”

February’s private residential construction spending reached $928.9 billion for a 1.3% monthly increase, while private nonresidential spending reached $757.5 billion for a 0.4% gain from January. Yaros said February’s spending will likely spur the research firm to revise upward its construction investment expectations for the first quarter, though full-year 2025 projections could still be lowered due to economic uncertainties. 

General Motors posted 17% annual unit sales growth in the first quarter, though rival automaker Ford reported a decline as pending tariffs loomed over an industry that is a major user of industrial and retail real estate.

Detroit-based GM Tuesday reported double-digit sales increases from a year earlier for all four company brands, with Chevrolet posting its best first quarter since 2019 as total GM unit sales topped 693,000. Dearborn, Michigan-based Ford reported a 1.3% annual sales decline for the first quarter, at just over 501,000 sales, though its March sales increased 10% from a year earlier.

President Trump this week is expected to announce a number of trade tariffs, including one that could impose a 25% fee on all imported cars. Some industry analysts said the first quarter’s U.S. auto sales were boosted in part by consumers buying ahead of tariffs taking effect, as announced tariffs on materials such as steel and aluminum are expected to raise costs for overseas and domestic automakers.

Cox Automotive analysts said the ultimate effects of tariffs, including potential vehicle price increases of 10% or higher, will depend on the duration of tariffs and when or whether they are applied to car parts as well as completed vehicles. GM, Ford and Stellantis have lobbied the Trump administration to exempt certain components from tariffs because they come primarily from overseas suppliers and can’t be readily re-sourced. 

Big-city office attendance averaged 53.6% of pre-pandemic levels for the week ended March 26, up slightly from the prior week’s 53.3% in Kastle Systems’ tracking of 10 large regions.

Based on anonymous keycard data from the security technology firm’s office property clients, the 10-city average stayed close to the peak 54.5% posted in the week ended March 5. The average has now registered above 51% for nine straight weeks, as many companies and government agencies have been increasing their in-office work requirements.

The latest Kastle numbers showed Texas cities again taking their customary spots in the top three for office traffic, with Houston at 62.9%, Dallas at 61.7% and Austin at 61.1%. They were followed by New York at 53.8%, Chicago at 52.9% and Washington, D.C., at 52.8%.