U.S. Construction Spending Rose 0.9 Percent in August
Contractors and suppliers should note the shift as spending trails the prior year's levels by 1.7 percent.
Updated on Oct. 1, 2026 in Construction
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Total construction spending reached a seasonally adjusted annual rate of $2,203.1 billion in August 2026, marking a 0.9 percent increase from the revised July estimate. This data reflects the latest output across residential and public infrastructure sectors.
Why it matters
The sector remains down 1.7 percent compared to August 2025 levels, indicating a cooling trend that impacts project pipelines and resource demand for operators. Businesses must balance this monthly uptick against the broader year-over-year contraction.
Total construction spending reached $2,203.1 billion in August 2026, a 0.9 percent monthly gain that follows a revised $2,184.5 billion in July. Year-to-date spending for the first eight months of 2026 stands at $1,450.4 billion, reflecting a continued lag against prior-year activity.
The players
Department of Commerce
The federal executive department responsible for gathering and reporting official U.S. economic data used to monitor industrial health.
The details
The Department of Commerce measures these figures as a seasonally adjusted annual rate, encompassing a mix of residential, nonresidential, and public works. In August, residential activity hit $882.3 billion, while nonresidential and highway construction recorded annual rates of $773.0 billion and $150.6 billion, respectively. These figures provide a consolidated view of market volume that informs material procurement and labor allocation strategies for general contractors.
Timeline
August 2025: Total construction spending was estimated at $2,242.0 billion.
First eight months of 2025: Total spending reached $1,496.6 billion.
July 2026: The construction spending estimate was revised to $2,184.5 billion.
August 2026: Construction spending increased by 0.9 percent.
Market Landscape
This data release adheres to the methodology of the Census Bureau's Value of Construction Put in Place Survey, which serves as the primary benchmark for sector performance. The current figures reflect a broader trend of cautious capital deployment compared to the previous year's output.
Operators should adjust their revenue forecasts to account for the ongoing 1.7 percent year-over-year decline despite the monthly boost. Evaluate current project backlogs against this data to identify whether regional demand is tracking with the national softening in private residential investment.
The takeaway
The recent 0.9 percent uptick does not erase the significant year-to-date lag compared to 2025, signaling that market volume remains tight. Use these official monthly figures to benchmark your company's growth against broader sector shifts during quarterly planning sessions.
Further reading
For more on industry performance trends, see the Construction section.
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