US Construction Spending Surprises on the Upside

Construction spending in the US rose by 0.9% month-over-month to a seasonally adjusted annual rate of $2,203 billion in August 2026, following a downwardly revised 0.1% decrease in July. Analysts had expected a flat reading. Private-sector construction rose 1.1%, supported by a 1.1% increase in residential activity, amid gains in single-family projects (+0.2%) and multi-family construction (+0.2%). Spending on nonresidential structures like offices and factories grew by 1%, with solid increases in office (4.6%), religious (2.9%), transportation (1.2%) and power (0.9%) construction. Meanwhile, public spending went up by 0.2%, driven by increases in both the residential (0.3%) and nonresidential (0.2%) segments. Year-on-year, construction spending shrank by 1.7%.

Construction spending in the US fell 0.5% month-over-month to a seasonally adjusted annual rate of $2,158 billion in July 2026, following a upwardly revised flat reading in June and missing market expectations of a flat reading. Residential construction spending fell 1.3%, while nonresidential spending edged up 0.1%. Within the nonresidential sector, the largest declines were recorded in conservation and development (-1.4%), manufacturing (-1%) and public safety (-1%). These were partly offset by gains in office construction (2.9%). Meanwhile, both private (-0.5%), dragged by a 3.2% decline in new single family residential construction spending, and public (-0.2%) construction spending fell over the month. In the first seven months of 2026, total construction spending fell 3.5% from the same period a year earlier to $1.245 trillion.

Construction spending in the US edged down 0.1% month-over-month to a seasonally adjusted annual rate of $2,166.5 billion in June 2026, following a downwardly revised flat reading in May and missing market expectations of a 0.2% increase. Residential construction spending fell 0.3%, while nonresidential spending edged up 0.1%. Within the nonresidential sector, the largest declines were recorded in public safety (-1.8%), commercial (-1.2%), manufacturing (-1.2%) and sewage and waste disposal (-1.1%). These were partly offset by gains in conservation and development (3.6%) and office construction (2.7%). In the first half of 2026, total construction spending fell 3.5% from the same period a year earlier to $1.047 trillion.