U.S. construction spending rises 0.9% amid push for transportation funding renewal

U.S. construction spending increased 0.4% from March to April and 0.9% from a year earlier, according to an analysis of new federal data by the Associated General Contractors of America.

Construction spending totaled $2.172 trillion at a seasonally adjusted annual rate in April, up from the revised March figure and above the April 2025 level.

Public construction spending increased 0.4% during the month and was 3.7% higher than a year ago. Highway and street construction, the largest public construction category, rose 0.4% from March and 3.9% year over year.

“Highway construction has been a major contributor to total nonresidential spending,” said Ken Simonson, the association’s chief economist. “For the past several months, total spending has increased only when there was a rise in year-over-year highway construction activity.”

Private residential construction increased 0.8% in April and was 1.7% higher than a year earlier. Single-family construction rose 1.4% from March but remained 2.9% below year-ago levels. Multifamily construction declined 0.3% for the month but increased 1.1% from April 2025.

Private nonresidential construction fell 0.2% in April and was down 2.1% year over year. Manufacturing construction declined 18.5% over the past 12 months.

Electric power and oil and gas-related construction increased 0.6% for the month and 6% year over year. Commercial construction fell 0.7% from March but rose 1.5% from April 2025. Warehouse construction declined 1.6% over the year, while retail construction increased 5.9%.

Private office construction, which includes data centers, increased 1% in April and 9.4% over the past 12 months. Data center construction rose 28% year over year, while spending on traditional office projects declined 5.5%.

Industry officials called on Congress and the White House to renew federal highway and transit funding before the current law expires Sept. 30.

“Any lapse in funding these vital projects would force contractors to sideline construction workers and delay purchasing needed equipment and materials,” said Jeffrey D. Shoaf, the association’s chief executive officer. “That would be a significant setback for the economy overall.”