AGC urges Congress to renew highway funding amid mixed construction spending

Construction spending rose 0.1% in May from April but declined 1.5% compared with May 2025, according to a new analysis of federal data by the Associated General Contractors of America.

Total construction spending reached a seasonally adjusted annual rate of $2.210 trillion in May.

Public construction spending increased 0.5% during the month and was up 0.3% from a year earlier. Highway and street construction, the largest public construction category, rose 0.6% from April and 2.9% year over year.

“Highway construction is one of the strongest segments of the construction market,” said Ken Simonson, the association’s chief economist. “Infrastructure investment is offsetting weakness in several private segments.”

Private residential construction increased 0.3% in May and was up 1.8% from a year earlier, driven by an 8.1% increase in residential additions and renovations. Single-family construction fell 0.1% from April and was down 4.0% year over year, while multifamily construction declined 0.1% for the month but remained 3.3% above May 2025 levels.

Private nonresidential construction declined 0.3% in May and was down 6.6% year over year. Manufacturing construction dropped 22.0% over the past 12 months. Commercial construction fell 5.5%, health care construction declined 5.9% and educational construction decreased 2.5% year over year.

Office construction increased 0.2% during the month and 4.7% from a year earlier, supported by a 23.0% increase in data center construction over the past 12 months.

The association urged Congress and the White House to renew the federal surface transportation law before it expires Sept. 30, saying continued highway and transit funding is needed to support infrastructure projects nationwide.

“Federal transportation investments have helped support construction activity, job growth and stronger economic performance across the country,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Our new polling shows voters overwhelmingly recognize those benefits and want Congress to pass a new highway and transit funding bill before the current law expires.”