Construction spending expected to rise by 4.1% in 2025
ConstructConnect Chief Economist Michael Guckes unveiled the U.S. Put-in-Place Construction Forecasts for Spring 2025 today. The forecast projects total construction spending to rise by 4.1% to $2.24 trillion this year and anticipates continued growth, with spending expected to reach $2.65 trillion by 2029.
The three primary construction categories—residential, nonresidential building, and engineering—are all expected to grow in 2025. Engineering work leads the categories with a projected 7.3% increase, followed by residential construction at 4.3% and nonresidential building at 1.9%.
“The U.S. construction sector is poised for steady expansion in 2025,” Guckes stated. He added, “The latest outlook marks a downshift in the sector’s growth rate after reporting greater than 6% growth in each of the last two years.”
Put-in-place spending data are comparable to work-in-progress payments as buildings under construction proceed to completion.
It remains essential for business leaders to closely monitor these fluctuations and industry nuances to direct their efforts on emerging opportunities and maximize profits.
Michael Guckes, Chief Economist, ConstructConnect
U.S. Grand Total Construction Spending Put-in-place (PIP) Investment. Image: ConstructConnect
Guckes said the forecast’s “diverse performance highlights the volatile nature of the construction sector.” He recommends paying close attention to the construction economy.
His bottom line: “It remains essential for business leaders to closely monitor these fluctuations and industry nuances to direct their efforts on emerging opportunities and maximize profits.”
The ConstructConnect Put-in-Place Construction Forecasts is produced in partnership with Oxford Economics.
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.