Tariffs Uncertainty Weighs on US Construction Investment
Date Posted: March 4, 2025
Posted In: News,
From Construction Briefing: Construction spending in the US slipped by 0.2% from December to January, as trade tariffs threatened by US President Donald weighed on investment decisions.
That is according to analysis of a new government report by the Associated General Contractors of America (AGC).
AGC officials warned that spending on new construction projects could be negatively impacted by new tariffs on goods from Canada, Mexico, and China, as well as making projects more costly.
Spending totaled $2.2 trillion at a seasonally adjusted annual rate in January. The total was 0.2% below from the December rate and 3.3% above the January 2024 level.
Ken Simonson, chief economist of the AGC noted that construction spending increased at a 6.6% rate in 2024 as a whole—twice as fast as the latest year-over-year increase.
“Construction spending growth has been slowing under pressure from high interest costs and now the prospect of new waves of tariffs,” Simonson said. “There have already been notable cancellations and postponements for major manufacturing plants and the impacts of new tariffs are likely to lead to more delays and cancellations.”