KEY POINTS
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Nonresidential construction spending slowed sharply on the West Coast but surged in the Mountain region, with year-to-date (YTD) growth topping 90%.
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Civil construction spending grew in seven of nine US divisions, with New England, the Middle Atlantic, and the Midwest leading gains.
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Megaprojects remain the dominant growth driver, with the Mountain division alone capturing nearly 25% of all such spending through July.
Nonresidential Construction Starts, US Regional Analysis
US nonresidential construction spending in 2025 continues to show dramatic regional contrasts, according to ConstructConnect data. West Coast growth slowed significantly, with year-to-date (YTD) spending gains cut nearly in half from 11.7% in June to just 5.7% in July.
By comparison, the Mountain division surged ahead, buoyed by megaproject activity, with YTD spending growth exceeding 90%. Plains and Midwest states remained challenged, with many regions posting outright contractions.
The West South Central division, including Texas, stood out with a 23.4% YTD increase, while the East South Central region contracted the most at 23.2%.
Along the East Coast, results were mixed: the Middle Atlantic and New England divisions posted YTD gains of 8.8% and 41.3%, respectively, while the South Atlantic slipped into contraction for the first time in 2025 after peaking at nearly 30% growth in May.
Map of Total Nonresidential Construction Starts through July 2025 by Census Divisions, from The Construction Economy Snapshot, August 2025. Image: ConstructConnect
Megaprojects Fuel Nonresidential Building Growth
Nonresidential Building (NRB) activity remains concentrated in regions landing the largest megaprojects. The Mountain division accounted for nearly one-quarter of all megaproject spending so far this year, driving an extraordinary 165.6% YTD growth in NRB activity.
Other strong performers included the West South Central division, at 36.2%, and New England, at 34.9%, though New England’s surge has come with relatively little megaproject participation.
Civil Construction Lifts More Regions
Civil spending in 2025 has lifted more regions than any other sector, with seven of nine divisions recording positive YTD growth.
Leading civil construction regional gains were:
- New England Up 49.2%
- Middle Atlantic Up 26.0%
- Midwest Up 23.5%
By contrast, the South Atlantic division reported the steepest Civil decline, retreating 22.4% YTD.
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