ConstructConnect reported today in the Construction Economy Snapshot that the January 2025 volume of Total Nonresidential construction starts—the sum of Nonresidential Building and Heavy Engineering—was $46.2 billion, an increase of $584 million, or 1.3%, compared to an upwardly revised December reading of $45.6 billion.
Chief Economist Michael Guckes, the report’s author, said, “Total Construction in January of $63.4 billion was more than 30% below the same level from the previous January, or year-on-year.”
“The new year started with the same underwhelming spending challenges that plagued the final two months of 2024,” he added.
Primary construction segments of the January 2025 Total US Construction Starts. Image: ConstructConnect Construction Economy Snapshot
All three primary construction segments for January were below their year-ago level led by Residential Construction (down 39.1%) and followed closely by Nonresidential Building (down 35.7%).
Even Civil Construction, the best and only positive performer last year, was down 16% in January.
Results were mixed among the group of over 30 Starts subcategories we track:
Total US Construction Starts, shown here over the past 12 months, includes three segments, also shown: Nonresidential Building, Heavy Engineering, and Residential Construction. Image: ConstructConnect Construction Economy Snapshot
Guckes said he does not expect the January results to last “as the new presidential administration’s pro-growth and pro-business agenda unfolds.”
He said challenges to the outlook for the construction economy include “stubborn inflation, which clocked in at 3% in its latest reading.”
As the year progresses and more data become available, Guckes expects year-to-date (YTD) results to moderate.
Earlier this month, the economist delivered his 2025 forecast in the Construction Economy Yearbook. He said the “anticipated rebound is thanks in part to two broad-based factors: a slowly improving interest rate environment and easing financial regulations.”
About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.