{"id":31229,"date":"2025-07-07T18:30:04","date_gmt":"2025-07-08T01:30:04","guid":{"rendered":"https:\/\/essential.construction\/news\/construction-spending-drops-for-fourth-straight-month\/"},"modified":"2025-07-07T18:30:04","modified_gmt":"2025-07-08T01:30:04","slug":"construction-spending-drops-for-fourth-straight-month","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/construction-spending-drops-for-fourth-straight-month\/","title":{"rendered":"Construction spending drops for fourth straight month"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">2 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1751895045\/news\/text_to_speech\/construction-spending-may-2025-drops_gwai5e.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Brief:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<ul>\n<li><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/nonresidential-construction-spending-down-02-in-may-says-abc\" target=\"_blank\"><span><span><span><span><span><span><span><span>Nonresidential construction spending dropped<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> 0.2% in May to a seasonally adjusted annual rate of $1.237 trillion, according to an Associated Builders and Contractors analysis released July 1.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Spending fell from the month prior in eight of 16 categories, according to ABC. Private nonresidential construction fell 0.4% and public nonresidential spending remained unchanged from the month before.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Many headwinds, such as high interest rates, a tight lending environment, new trade and immigration policies and general uncertainty may make it a challenge for spending to rebound in the second half of 2025, said ABC chief economist Anirban Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Insight:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>May marked the fourth consecutive month of drops, Basu said. Even strong markets, such as manufacturing, have begun to decline from recent peaks. In addition, ABC\u2019s <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/backlog-slips-2-year-high-tariff-delays\/750530\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>backlog indicator experienced<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> a sharp dip in May, indicating that contractors have less work on the books.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cPrivate sector nonresidential activity remains particularly weak and is down nearly 7% from its January 2023 peak,\u201d Basu said in the release. \u201cManufacturing investment, which increased more than 200% in recent years, has begun to fall and is now down more than 5% since its August 2024 peak. With the exception of data centers, on which spending increased another 1% in May, there are few categories with momentum.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span><span><span><span><span><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXenJW2iiSh6ktYWnnOOW-HRX1tcsVlxgkz4a17jRFKATt8VBPZYPMOHeDJJIiYF1XxXYLTd38l4GHKk2Mtg6f2ZSN0X6lF7f2UjKSWtTOs1TFiImhZp08d0hlqKlum-IFE6zeLpWA?key=ny1kNeUo-ROf7fw7GaSqaA\" alt=\"-\"><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In addition, May\u2019s spending was down 3.5% year over year, the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.agc.org\/news\/2025\/07\/01\/construction-spending-decreases-03-percent-april-may-and-35-percent-over-12-months-marking-largest\" target=\"_blank\"><span><span><span><span><span><span><span><span>largest such decrease since February 2019<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, according to the Associated General Contractors of America.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cUncertainty about tariffs, tax rates and labor availability are making it hard for many developers to risk moving forward with planned construction projects,\u201d said Ken Simonson, AGC\u2019s chief economist in the release. \u201cWhile public sector demand remains solid, it just isn\u2019t enough to offset the private sector pullbacks in activity.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-spending-may-2025-drops\/752302\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 2 min This audio is auto-generated. 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Dive &#8230; <a title=\"Construction spending drops for fourth straight month\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/construction-spending-drops-for-fourth-straight-month\/\" aria-label=\"Read more about Construction spending drops for fourth straight month\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-31229","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=31229"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31229\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=31229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=31229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=31229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}