U.S. construction spending edged down 0.1% in June to a seasonally adjusted annual rate of $2.167 trillion, falling 3.2% below June 2025 levels, according to a recent analysis of new federal data by the Associated General Contractors of America.
The figures highlight a widening divide across the sector. While public infrastructure and data centers continue to generate steady demand for bulk construction materials—such as liquid asphalt, cement slurries, and site-prep chemicals—widespread declines across private manufacturing and commercial development are beginning to weigh down overall freight volume.
“We’re beginning to see weakness spread across much of the construction market,” Macrina Wilkins, AGC’s director of market insights, said in a news release. “While data centers and a handful of other segments remain bright spots, the largest public category—highway construction—is at risk of a sharp decrease if Congress fails to renew federal funding before the current law expires at the end of next month.”
Infrastructure builds boost bulk demand
Public infrastructure remains a crucial stabilizing force for bulk transporters, the report suggests.
Total public construction spending held flat in June but stood 1.7% higher than a year earlier. Highway and street construction—the main driver of demand for liquid asphalt binder and heavy equipment diesel—slipped 0.1% from May but remained 3.1% higher than June 2025. However, AGC warns this stability is threatened if Congress allows federal highway authorization to expire Sept. 30.
Data center buildouts provide another active bright spot, AGC indicated. The private “office” category rose 2.8% for the month and 15.1% year-over-year, propelled by a 46.0% annual surge in data center construction. Rapid data center development generates localized demand for site-preparation fluids, concrete admixtures, and specialized industrial cooling liquids. Conversely, standard private office construction dropped 11.6% over the same period.
Private-sector softness weighs on deliveries
Outside of data centers, contraction in the private market presents headwinds for bulk material supply chains:
- Manufacturing construction: Dropped 22.0% year-over-year, sharply curbing industrial chemical and slurry deliveries to major plant construction sites.
- Commercial spending: Decreased 1.3% from May and 5.3% annually, reducing short-haul paving and site-prep work.
- Institutional builds: Healthcare construction fell 4.6% and educational builds dropped 4.3% from year-ago levels.
- Residential market: Private residential construction slipped 0.3% monthly and 4.7% year-over-year (single-family down 3.3%, multifamily down 1.5%), limiting demand for foundation additives and utility trenching products.
Call for congressional action
AGC officials urged lawmakers to act swiftly to prevent further weakness in the sector by securing long-term funding for public projects.
“The latest spending data makes clear that public infrastructure is helping offset broader weakness in the construction market,” AGC CEO Jeffrey D. Shoaf said. “Congress should build on that momentum by renewing the federal highway and transit program before the current law expires. Providing contractors with long-term certainty will help keep infrastructure projects moving and support the entire economy, not just contractors and construction suppliers.”
