According to the Commerce Department's Monthly Construction Spending report for June 2026, total construction spending was estimated at a seasonally adjusted annual rate of $2,166.5 billion, representing a 0.1% decline from the revised May estimate of $2,168.5 billion. The June figure marked a significant 3.2% decrease compared to the same period in 2025, when construction spending reached $2,237.7 billion. For the first six months of 2026, construction spending totaled $1,046.9 billion, which was 3.5% below the $1,084.5 billion recorded during the same period in 2025.
Private construction spending reached a seasonally adjusted annual rate of $1,622.5 billion in June 2026, showing minimal change from the revised May estimate of $1,624.5 billion. Residential construction specifically totaled $877.1 billion, representing a 0.3% decline from the revised May estimate of $879.9 billion. Nonresidential construction demonstrated resilience with an estimated annual rate of $745.3 billion, 0.1% above the revised May estimate of $744.6 billion. However, the broader nonresidential category experienced a substantial $36.8 billion decline, with office construction excluding data centers falling by $6.2 billion. According to Associated Builders and Contractors analysis, private nonresidential construction spending declined 4.7% year-over-year, with spending falling in eight out of 16 categories measured by ABC.
The construction industry continues to be anchored by data center spending, which has maintained its growth trajectory despite broader sector challenges. As per Associated Builders and Contractors chief economist Anirban Basu, private nonresidential construction spending has declined to a seasonally adjusted annual rate of $745.3 billion since the April 2025 peak, translating into a decline exceeding 7%. However, the health of the industry continues to be anchored by data center spending, with the 13% of ABC members with data center contracts on the books having 11 months of backlog, two and a half more months than the 87% that don't have such contracts. Data centers specifically led growth at $21.4 billion, while manufacturing declined significantly by $48.0 billion year-over-year. According to the latest analysis, data center construction increased 46% over the past 12 months, while private office construction excluding data centers actually fell 11.6%.
The construction spending data emerges against a backdrop of mixed economic signals, with the U.S. economy growing at a 1.5% annualized rate in Q2 2026, slower than the 2.1% growth in Q1 but exceeding economist expectations. As per the Bureau of Economic Analysis, this growth was tempered by a surge in imports that subtracted from GDP, though it was offset by a sharp rebound in consumer spending and continued strength in business investment, particularly in technology and artificial intelligence sectors. National Economic Council Director Kevin Hassett expressed optimism about the economy, stating he doesn't see GDP as a "half-full glass ... it's a full glass," citing "a big boom in consumption, a big boom in investment." The Atlanta Fed's initial GDPNow estimate suggests this optimism could translate to 5.0% growth in Q3 2026, though it leaves the Federal Reserve with the challenge of balancing economic expansion against inflation that remains above its 2% target.
