Key Points
- May 2025 Nonresidential US Construction Starts were $77.2 billion, an increase of $12.8 billion, up 19.8% over last month.
- ConstructConnect Chief Economist Michael Guckes reported that the latest results pushed nonresidential spending growth into positive territory for the first time this year, up 6.9%.
- Only weak residential spending is now keeping total construction activity from moving into positive growth territory.
ConstructConnect announced today that the May 2025 volume of Total Nonresidential Construction Starts — the sum of Nonresidential Building and Civil Construction — was $77.2 billion, an increase of $12.8 billion, or 19.8%.
The latest results pushed Nonresidential spending growth into positive territory, up 6.9%, for the first time this year.
Read the June 2025 Construction Economy Snapshot
May Starts Provide Strong YTD Support
Monthly nonresidential starts jumped to $77.2 billion, its highest reading in recorded history.
“Five megaprojects contributed over $30 billion to the month’s total starts spending, setting a record,” said ConstructConnect Chief Economist, Michael Guckes.
“Strong megaproject activity in consecutive months has lifted the 12-month moving average of megaproject spending to $12.3 billion.”
The remaining megaprojects were split between Transportation Terminals, Power Plants and Lines, and Tunnels. ConstructConnect recorded 27 megaprojects totaling $67.9 billion in the YTD period through May.
Guckes added, “This is a 50% improvement over the recent low recorded during February, when average monthly megaproject spending fell to a post-COVID low of just $8.4 billion.”
The majority of May’s megaproject spending was attributed to the recent groundbreaking of the Taiwan Semiconductor Manufacturing Company’s new chip plant located in Phoenix, AZ.
The megaproject activity for the month transitioned manufacturing “from being among the five worst-performing subcategories YTD to now being among the top five best performers through May,” Guckes said.
“May’s megaprojects spending once again emphasized the importance of very large projects in the nonresidential construction market, accounting for 39% of the month’s total spending.”
Best and Underperforming YTD Categories
Summary Construction Starts chart of best performing and underperforming large dollar categories, year-to-date through May 31, 2025:
Read the Construction Economy Snapshot for more details on construction labor, trends, and regional analysis.
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