In the first quarter of 2025, the U.S. construction industry faced a complex landscape characterized by U.S. construction volume continuing to show solid growth across various sectors, despite facing challenges like rising material costs and ongoing labor shortages.

We forecast 2025 to have an overall 1.15% annual increase in volume. Infrastructure projects remain a major driver, thanks to federal funding and state investments in transportation, public utilities, and green energy initiatives. The residential sector has seen recovery, especially in single-family housing, though affordability issues and material cost inflation are limiting broader growth in some regions. Commercial construction is maintaining steady activity, particularly in data centers and healthcare facilities, though demand for office space is facing uncertainty amid shifting work trends. Overall, once the data is available, we expect it to show that construction volume continued expanding through the second quarter of 2025, although the pace may have been somewhat held back by higher costs and labor constraints.