The U.S. construction slowdown persisted in June, as the industry pulled back on shelling out money for new projects for the second month in a row.
In June, construction spending came in at $2.1 trillion — down 0.4 percent from May and 2.9 percent year over year, according to new figures released by the U.S. Census Bureau.
For the first half of the year, construction has been 2.2 percent lower compared to the same time last year.
Spending on public projects fared better than private work. Public construction spending was up 5.2 percent from June 2024, while private construction was down by that amount.
Commercial construction in June took the greatest hit. Spending in that sector plunged 9.4 percent compared to the year prior. Residential construction was down 6 percent year over year, the second-greatest drop.
The bright spots in construction spending were for religious structures (+16.8 percent year over year) and sewage and waste disposal assets (+11 percent year over year).
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Construction spending in the U.S. peaked in May 2024 at $2.2 billion. Then, spending began to taper — and it’s not likely to reverse course anytime soon. Permits for new residential construction are down across the country amid continued economic headwinds. Even the biggest contractors in New York City are building fewer and smaller projects this year.
President Donald Trump first stoked concerns over his historic tariffs in April, and this week announced additional tariffs starting Aug. 1. Inflation also remains high, leading the Federal Reserve to hold its benchmark interest rates steady, potentially further curbing borrowing.
Meanwhile, Trump’s hardline immigration policies have created a chilling effect at construction sites, often key targets for Immigration and Customs Enforcement agents, and intensified pressure for skilled laborers in an industry already short on workers.