Construction Spending Drops to $1.285 Trillion in March from February

Construction spending hit a seasonally adjusted annual rate of $1.285 trillion in March, down from the month before, but still up compared to a year ago, according to an analysis of new Census data by the Associated General Contractors of America. Association officials noted that the monthly decline in construction activity came largely from drops in private sector demand as new steel and aluminum tariffs and the price increases they have prompted appear to be impacting demand.

"The administration's new steel tariffs appear to already be having a negative impact on demand for many types of construction services," said Stephen E. Sandherr, the association's chief executive officer. "Not only are contractors getting squeezed by higher prices for steel and aluminum products, but it seems many private sector developers are rethinking some investments amid growing fears of a trade war."