US Construction Spending Rises More than Expected

Construction spending in the US rose 0.5% month-over-month in October 2025, following a 0.6% decrease in September and above market estimates of a 0.1% uptick. Private sector spending rose by 0.6% in the period, bouncing back from a 0.9% decline in September, chiefly driven by the residential sector. Investment in residential construction rose 1.3%, after a 1.4% drop in September, likely due to renovations, as both new single (-1.3%) and multi-family (-0.2%) projects declined. The nonresidential segment shrank by 0.2%. Meanwhile, public spending edged up by 0.1%, following a 0.4% advance in the prior month, driven by a 0.1% increase in the nonresidential sector. Year-on-year, construction spending shrank by 1%. The data was delayed by the 43-day government shutdown.

Construction spending in the US rose 0.2% month-over-month in August 2025, matching the upwardly revised 0.2% increase in July and defying expectations of a 0.1% decline. Residential construction spending surged 0.8%, offsetting a 0.2% decline in nonresidential activity. Within the nonresidential sector, construction fell in manufacturing (-0.9%), power (-0.2%), highways and streets (-0.2%), and transportation (-0.5%), but rose in the educational segment (0.7%). Meanwhile, private construction spending increased 0.3%, with residential activity up 0.8% and nonresidential projects rising 0.3%. On the other hand, public construction spending was virtually unchanged from July. Year-on-year, construction spending declined 1.6%. For the first eight months of the year, total construction spending reached $1,438.0 billion, 1.8% lower than in the same period of 2024.

Construction spending in the United States fell by 0.1% month-over-month to a seasonally adjusted annual rate of $2,139.1 billion in July 2025, in line with forecasts and marking the ninth consecutive monthly decrease. Private sector spending fell by 0.2% in the period, with the nonresidential segment shrinking by 0.5%, with amusement and recreation buildings seeing the steepest drop at 1%. Conversely, residential construction rose by 0.1%, as a 0.1% increase in single-family projects was outweighed by a 0.4% fall in multi-family buildings. Meanwhile, public spending went up 0.3%, chiefly driven by a 1.8% increase in the residential sector. The nonresidential segment rose by 0.3%, led by conservation and development (+1.8%) and power projects (+1.7%). On a yearly basis, construction spending slumped by 2.8% in July.