ARTICLE
After five years of strong gains totaling over 40%, FMI forecasts a much cooler 2% increase in U.S. construction spending in 2025. While still positive, this slowdown reflects broader economic headwinds and marks a shift to more moderate, sustainable growth. Key Trends and Insights From the Q2 Report: Economic Pressures Ahead: Despite ongoing recession risks, construction spending is expected to grow modestly—though inflation may offset perceived gains. Industry Resilience: Federal investments and evolving monetary and trade policies are helping stabilize the industry, even as growth returns to historical norms. Single-Family Housing Recovery: Lower interest rates and potential housing policy reforms are boosting this critical segment, helping drive broader demand. Multifamily Slump: Overbuilding, high vacancy rates, and tight financing are causing this sector to contract, impacting related markets like retail, lodging, and office space. Infrastructure Leads the Way: Backed by bipartisan funding and upcoming reauthorization of Infrastructure Investment and Jobs Act (IIJA) programs, infrastructure remains a bright spot, especially in water, power and transportation. Stable but Cautious Growth in Nonresidential Sectors: Health care, education and public safety construction remain steady, though cautious due to funding and cost challenges. Click here to read all the details in FMI's latest report.
After five years of strong gains totaling over 40%, FMI forecasts a much cooler 2% increase in U.S. construction spending in 2025. While still positive, this slowdown reflects broader economic headwinds and marks a shift to more moderate, sustainable growth.
Key Trends and Insights From the Q2 Report:
Click here to read all the details in FMI's latest report.