Concrete & Masonry Contractors NAICS 238110, 238140

Aug 4, 2025 - Nonresidential Building Construction Spending Mixed

• The total value of nonresidential construction put in place declined by 0.1% in June 2025 compared to May, according to the US Census Bureau. Spending on nonresidential building projects was mixed in June. Growth was led by a 1.1% uptick in lodging spending, followed by educational (up 0.2%), and amusement and recreation (+0.2%). However, several segments on the nonresidential building construction subsector saw spending fall in June, including office (Down 1.2%), commercial (-0.7%), manufacturing (-0.5%), and healthcare (-0.2%). Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months.” He went on to say, “While ABC members remain optimistic about the second half of the year, according to ABC’s Construction Confidence Index, recent data pertaining to both the construction industry and the broader economy suggest weakness could persist in the months to come.”
• Home remodeling spending growth is expected to remain flat in 2025 and the first half of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 2% to $509 billion in the third quarter of 2025 compared to Q3 2024. In the fourth quarter of 2025, remodeling spending will rise quarter-over-quarter to $511 billion, up 1.8% from Q4 2024. Spending will increase to $524 billion in Q1 2026, up 2.2% from Q1 2025. In the second quarter of 2026, year-over-year spending is forecast to rise 1.2% to $518 billion. Joint Center expects a weak housing market to put downward pressure on remodeling spending. However, recent federal cuts to incentives for efficiency improvements may spur short-term growth as homeowners make upgrades before benefits expire at the end of the year.

• Single-family housing starts decreased 4.6% in June 2025 from May, marking the weakest starts activity since June 2024, according to the US Census Bureau. Permitting activity for single-family housing – an indicator of future homebuilding activity – rose 0.2% in June compared to the month before. High interest rates, economic uncertainty, and an oversupply of unsold new homes are weighing on the US homebuilding market, according to Reuters. The inventory of new homes waiting to be sold is the highest since 2007. Some economists suggest that lower interest rates would be a lifeline for the sluggish housing market, but the Federal Reserve is concerned that lowering rates could exacerbate the inflationary effects of the Trump administration’s tariff policies.
• Demand for building design services dropped in June from the prior month, as architectural billings remain soft, according to a July report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 46.8 in June from May’s reading of 47.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 53.6 in June compared to 51.4 in May, and the index for the value of new design contracts increased from 45.9 to 46.0. The AIA’s Chief Economist, Kermit Baker said, “Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October. Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”