Residential construction spending increased 0.1% from June to July to a seasonally adjusted annual rate of $898 million, according to the U.S. Census Bureau. Compared with July 2024, residential construction spending decreased 5.1%.
Industry-wide construction spending fell 0.1% from June to July to a seasonally adjusted annual rate of $2.139 trillion. Compared with July 2024, construction spending decreased 2.8%.
“Nearly one in four Associated Builders and Contractors members reported having a project interrupted or canceled due to tariffs in July, according to ABC’s Construction Backlog Indicator survey, and that predates the particularly large import tax increases put into effect in early August,” ABC Chief Economist Anirban Basu said in a statement. “With economic uncertainty still elevated, labor shortages reemerging and materials prices rising, it may be a bleak second half of the year for the construction industry.”
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