Construction spending cools
U.S. construction activity eased in January — down 0.3% — marking a shift after years of record renovation spending and making homeowners pickier about project ROI. That slowdown is the backdrop for more selective, wellness‑focused renos this spring. ( )
The Census-based estimate put the seasonally adjusted annual rate of U.S. construction put in place at about $2.1904 trillion for January, roughly $7.2 billion below December’s revised $2,197.6 billion and about 1.0% higher than January 2025. (bankingjournal.aba.com) Private construction activity was roughly $1.66 trillion in January, with residential outlays down 0.8% and private nonresidential spending down 0.4%, while public construction rose about 0.6% to near $529.2 billion led by highway work. (tradingeconomics.com) The Associated General Contractors flagged sharp year-over-year moves inside the data — residential improvements jumped 12.5% and data center investment surged 31.3%, even as manufacturing construction plunged about 15% and private office spending fell roughly 13%. (agc.org) KPMG’s sector analysis found construction input costs excluding labor rose 2.8% year-over-year and called out higher diesel, shipping disruptions and remaining tariffs as near-term cost drivers that are squeezing project economics. (kpmg.com) Design & Construction Week in Las Vegas was singled out as the showcase for wellness-focused remodeling this spring, with Forbes identifying five wellness-enhancing trends on display at the expo. (forbes.com) Trade coverage and industry outlets pointed to concrete wellness products and accessibility trends gaining traction — Green Builder highlighted the SPAN Panel MLO 48 (MSRP ~$3,500) as an award-winning resilience and electrification product, and Houzz research shows 66% of remodelers address special needs during bathroom projects, reinforcing demand for wellness- and accessibility-oriented upgrades. (greenbuildermedia.com) Public outlays, up about 4.5% year-over-year, continue to shore up total construction spending even as several private categories soften, according to association and census analyses. (agc.org)
