Story perspectives

U.S. Construction Spending Drops 0.3% Amid Rising Costs

3/24/2026

Summary

Story summary

U.S. construction spending fell 0.3% in January 2025, contrary to economists' expectations for a 0.1% gain, according to the Commerce Department.
Private construction spending declined 0.6% in January 2025.
Public construction spending rose 0.6% in January 2025.
Residential investment declined for four consecutive quarters.
Mortgage rates averaging 6.22% and higher material costs are expected to push material prices higher because of the ongoing Middle East conflict.

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Story summary

U.S. construction spending fell 0.3% in January 2025, contrary to economists' expectations for a 0.1% gain, according to the Commerce Department.
Private construction spending declined 0.6% in January 2025.
Public construction spending rose 0.6% in January 2025.
Residential investment declined for four consecutive quarters.
Mortgage rates averaging 6.22% and higher material costs are expected to push material prices higher because of the ongoing Middle East conflict.