Skip to main content
August 4, 2025 - 2:44pm

Key Takeaways


Press Release from Associated Builders and Contractors: Nonresidential Construction Spending Contracts in 6 of Past 7 Months

WASHINGTON, Aug. 1National nonresidential construction spending decreased 0.1% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.241 trillion.

Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending fell 0.3% for the month, while public nonresidential construction spending inched 0.1% higher.

“Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months,” said ABC Chief Economist Anirban Basu. “Recent declines would be worse if not for ongoing increases in public nonresidential spending, which has risen 5.1% over the past year, significantly outperforming the 4.0% annual decline in private nonresidential activity. While ABC members remain optimistic about the second half of the year, according to ABC’s Construction Confidence Index, recent data pertaining to both the construction industry and the broader economy suggest weakness could persist in the months to come.”


 

Press Release from Associated General Contractors of America (AGC)

Construction Employment Inches Up By 2,000 Jobs In July, While Spending Declines By 0.4 Percent In June As Owners Defer And Cancel New Projects

Year-over-Year Gains in Employment Slow Sharply from Previous 12 Months; Private Residential and Nonresidential Outlays Decline from May and from June 2024, Offsetting Small Gain in Public Spending

Construction employment edged higher by 2,000 jobs in July, as spending on projects underway in June decreased 0.4 percent from May, according to an analysis of two new government reports that the Associated General Contractors of America released today. Association officials pointed to ongoing tariff and labor uncertainty as the reason many construction owners may be scaling back planned projects.

“Employment growth in construction has slowed over the past year as uncertainty about tariffs and labor availability have caused owners to delay, stretch out, shrink, and cancel projects,” said, Ken Simonson, chief economist of the Associated General Contractors of America. “As more structures that broke ground in past years reach completion, it is likely that industry employment growth will taper off even more.”

Overall construction employment totaled 8,310,000, seasonally adjusted, in July. Employment rose by 96,000 or 1.2 percent from July 2024 to last month. That gain was less than half as much as the increase of 200,000 jobs (3.1 percent) in the previous 12 months, Simonson noted.

Employment increased by 6,400 from June to July and by 114,400 or 2.4 percent over 12 months at nonresidential construction firms—nonresidential building and specialty trade contractors, along with heavy and civil engineering construction businesses. That increase more than offset a decline of 4,400 employees for the month and 18,200 (-0.5 percent) over 12 months at homebuilders and residential specialty trade contractors.

Spending totaled $2.14 trillion at a seasonally adjusted annual rate in June. The total was 0.4 percent below the May rate and 2.9 percent lower than the June 2024 level.

The construction spending total was dragged down by decreases in private residential and nonresidential projects, which outweighed a small pickup in public work. Private residential spending declined 0.7 percent in June and 6.2 percent over 12 months, while private nonresidential spending slipped by 0.3 percent for the month and 4.0 percent year-over-year. Public construction outlays rose 0.1 percent from May to June and 5.2 percent over 12 months.

Association officials urged the Trump administration to continue completing trade agreements to provide greater tariff certainty. And they urged the administration to focus its immigration enforcement efforts on undocumented individuals who are engaged in additional criminal activity to avoid additional disruptions to construction and economic development projects.

“The more uncertainty there is, the less likely developers are going to invest in significant new construction projects,” said Jeffrey D. Shoaf, the association’s chief executive officer. “The more this administration can do to provide economic certainty, the more likely demand for construction will rebound.”

What Our Clients Say

"I just wanted to commend Robert’s continued support since our go-live. Whether it be implementation or ad hoc questions, he has gone above and beyond."

Daniel C. - FMT Shipyard and Repair

"Beth is absolutely wonderful to work with! I appreciate her patience and professionalism. It’s a relief to know I can count on her to respond and be a life line for us as we continue to learn the system. She is truly top notch."

Eastbound Mechanical

"I want to let you know how grateful we are for Robert Pacheco’s assistance. He was able to meet with me and discuss the issue promptly and complete the fix within a short amount of time. He is surely an asset, and we are thankful to have such a great resource."

Marques General Engineering, Inc.

"Kristen is a very valuable resource for us!"

LCI-Lineberger Construction Inc.

"I wanted to let you know Dan did a great job. He has a vast amount of knowledge, and I feel very fortunate to be working with him."

H.F. (Mechanical Contractor)

"It’s a pleasure working with Robert. He's very patient, knowledgeable and goes far beyond to help with any issues we have as a company or as an individual."

HL Contractors

"Michael and Matthew have exceeded my needs and expectations. I get help same day 95% of the time, which is very important in my business at times. They are professional and courteous 100% of the time. Zero complaints."

Mitchell Brothers

"Greg is terrific, and I’m so excited to have a better resource! I have him working on several projects now with many more to come."

Progressive Plumbing

"He did a great job online and an equally great job in person. We’re enjoying working with our new Spectrum Viewpoint accounting software."

Chambliss & Rabil Contractors, Inc.

"The level of service CDP provides is exceptional and always far exceeded my expectations. You can quote me on that!"

The Wesson Group LLC

"The best part was watching folks react to the info Greg shared. We had great feedback, big smiles all around, and folks excited about newfound streamlined ways to make their work easier. We know Greg's schedule is in demand, and appreciate the time he shared with us."

S.D. (Industrial Construction)

"We appreciate Tim and all of his excellent support."

M.J. (Manufacturing Firm)

"Thank you for your assistance/responsiveness to assist us in getting P6 back online so quickly today. We appreciate all the support you provide."

M.J. (Manufacturing Firm)