PRESS RELEASES
WASHINGTON, May 1 & 2 — National nonresidential construction spending decreased 0.5% in March, according to an Associated Builders and Contractors analysis of data published this week by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.25 trillion.
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.8%, while public nonresidential construction spending was down 0.2% in March.
“Nonresidential construction spending fell sharply in March, with declines spread across virtually every private subsector,” said ABC Chief Economist Anirban Basu. “Data center investments, which accounted for more than 70% of the increase in private nonresidential construction spending between March 2024 and March 2025, are perhaps the only remaining source of industry momentum. Manufacturing construction, while still elevated, has wavered in recent months. Most commercial segments remain subdued under the weight of high borrowing costs and tight lending standards. Residential construction continues to slide.
“Given unprecedented economic uncertainty, spending is unlikely to rebound in the coming months,” said Basu. “While a majority of contractors surveyed in March were still optimistic about their future sales, according to ABC’s Construction Confidence Index, sentiment is likely to falter as the effects of tariffs begin to raise input prices and stall or cancel projects.”
Meanwhile, the construction industry added 11,000 jobs in April, according to new data from the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has grown by 143,000 jobs, an increase of 1.7%.
Nonresidential construction employment increased by 8,000 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 4,900 positions, while nonresidential building added 3,600 jobs. Heavy and civil engineering lost 500 positions for the month.
The construction unemployment rate rose to 5.6%, while unemployment across all industries remained unchanged at 4.2% in April.
“The construction industry added a perfectly acceptable 11,000 jobs in April,” said Basu. “That said, April is likely the last month of economic data largely unaffected by tariffs and tariff-related uncertainty.”
Despite weak construction spending data for March and several economic headwinds... backlog remains sufficiently elevated to keep industry employment growing for the time being, he added.
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Of note, the construction industry had 248,000 job openings on the last day of March, according to the BLS Job Openings and Labor Turnover Survey (JOLTS).
JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 38,000 last month and are down by 90,000 from the same time last year, according to BLS.
“Construction job openings continued to trend lower in March, a clear sign of slowing industrywide demand for labor,” added ABC's Basu. “Hiring activity was particularly weak for the month, with the 302,000 hires equivalent to just 3.6% of industrywide jobs—the lowest rate ever recorded."
While a majority of contractors surveyed in March still expected to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, "tariffs and other economic headwinds may blunt hiring expectations in the months to come,” he added.
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About ABC
Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.