US Construction Spending Falls 0.3% in January

US construction spending declined 0.3% month-over-month in January 2026, reaching a seasonally adjusted annual rate of $2.19 trillion, following a revised 0.8% increase in December 2025 and missing market expectations of a 0.1% rise. Private construction fell 0.6% to $1.66 trillion, with residential construction down 0.8% and nonresidential construction slipping 0.4%. In contrast, public construction spending rose 0.6% to $529.2 billion, led by a 3.3% surge in highway construction, while public educational construction dipped 0.2%.

Construction spending in the US rose by 0.3% month-over-month in December 2025, following a 0.2% decrease in November, in line with market forecasts, delayed data showed. This was the first monthly increase after three consecutive months of declines. Private sector spending advanced 0.5% during the period, after easing by 0.2% in November, driven by a 1.5% gain in the residential segment, primarily new single-family projects (+1.6%) and, to a lesser extent, multi-family projects (+0.1%). Conversely, spending on nonresidential structures like offices and factories decreased by 0.7%. Meanwhile, public spending fell by 0.5%, after a 0.2% decrease in November, led by declines in both the residential (-2.7%) and nonresidential (-0.4%) segments. On a yearly basis, construction spending shrank by 0.4%. Considering the full year of 2025, construction spending shrank by 1.4% over a year ago.

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.