FX.co ★ US Construction Spending Unexpectedly Rises

In August 2025, construction spending in the United States increased by 0.2% compared to the previous month, a figure that matched the upwardly revised gain of 0.2% in July and contrary to expectations of a 0.1% decrease. Residential construction led the surge with an 0.8% increase, effectively balancing out a 0.2% decline in nonresidential construction activities. Within the nonresidential sector, several categories experienced declines: manufacturing decreased by 0.9%, power by 0.2%, highways and streets by 0.2%, and transportation by 0.5%. However, the educational sector saw a rise of 0.7%. Private construction spending grew by 0.3%, with residential projects up by 0.8% and nonresidential ventures increasing by 0.3%. Conversely, public construction spending remained largely unchanged since July. On a year-over-year basis, construction spending fell by 1.6%. Over the first eight months of the year, total construction expenditure amounted to $1.438 trillion, which is 1.8% lower than the corresponding period in 2024.