Construction Spending Was Weaker Than Expected in January, Especially Housing

Construction spending dropped 0.2 percent vs flat expectation. Nonresidential declined 0.5 percent.

The Monthly Construction Spending report has weak numbers for January.

Total Construction Spending

Construction spending during January 2025 was estimated at a seasonally adjusted annual rate of $2,192.5 billion, 0.2 percent (±0.7 percent) below the revised December estimate of $2,196.0 billion.
The January figure is 3.3 percent (±1.3 percent) above the January 2024 estimate of $2,122.2 billion.

Private Construction Spending

Spending on private construction was at a seasonally adjusted annual rate of $1,686.0 billion, 0.2 percent (±0.7 percent) below the revised December estimate of $1,690.1 billion.
Residential construction was at a seasonally adjusted annual rate of $932.7 billion in January, 0.4 percent (±1.3 percent) below the revised December estimate of $936.9 billion.
Nonresidential construction was at a seasonally adjusted annual rate of $753.3 billion in January, virtually unchanged from (±0.7 percent)* the revised December estimate of $753.2 billion.

Public Construction Spending

Spending on Public Construction was at a seasonally adjusted annual rate of public construction spending was $506.6 billion, 0.1 percent (±1.3 percent) above the revised December estimate of $505.9 billion.
Educational construction was at a seasonally adjusted annual rate of $109.8 billion, 0.4 percent (±2.0 percent) below the revised December estimate of $110.3 billion.
Highway construction was at a seasonally adjusted annual rate of $145.0 billion, 0.6 percent (±3.9 percent) above the revised December estimate of $144.1 billion.

Construction Spending Millions of Dollars

Public plus private equals total spending. So does residential plus nonresidential.

A decline of 0.5 percent on residential construction was the key item to the unexpected overall decline.

Data is weakening on many fronts simultaneously.

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