A new industry report reveals that U.S. construction output is expected to slow significantly in 2025, growing just 1.4% in real terms compared to a robust 6.6% expansion in 2024.
The slowdown is largely attributed to weak investor confidence across commercial, industrial, and residential sectors. Additionally, recent policy actions—such as a 90-day freeze on federal subsidy programs under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act—have dampened momentum in key segments like energy, utilities, and transportation infrastructure.
This pause in policy support has raised concerns about billions of dollars in delayed or paused infrastructure investments, some of which were already under development. However, analysts predict a moderate recovery, with average annual growth returning to around 2% from 2026 to 2029. This rebound is expected to be driven by renewed investment in sectors such as transportation, housing, and oil and gas.
The introduction of the “America First Investment Policy” in March 2025 has already resulted in over $2.8 trillion in committed investments. Notable contributions include a $100 billion semiconductor project and a $55 billion healthcare expansion. Major infrastructure projects, like a $10 billion LNG terminal in Louisiana, are also on track for approval and execution.
