US Construction Spending Rises More than Expected

Construction spending in the US rose by 0.6% month-over-month in March 2026, following a 0.2% fall in the prior month and better than the expected 0.2% increase. This marked the first increase since December last year. Private construction increased by 0.8%, buoyed by a 1.7% gain in the residential segment, primarily new single-family projects (+2.7%) and, to a lesser extent, multi-family projects (+0.3%). Conversely, spending on nonresidential structures shrank by 0.2%, primarily manufacturing (-1.2%), commercial (-0.6%) and lodging (-0.5%). Meanwhile, public construction spending fell 0.2%, led by declines in both residential (-2.7%) and nonresidential (-0.2%) segments. Year-on-year, construction spending grew by 1.6%.

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.