US construction spending declined 0.5% month-over-month in July 2026 to a seasonally adjusted annual rate of $2,158 billion, following an upwardly revised flat reading in June and falling short of market expectations for no change. Residential construction spending dropped 1.3%, while nonresidential outlays inched up 0.1%.
Within the nonresidential segment, the steepest declines were in conservation and development (-1.4%), manufacturing (-1.0%), and public safety (-1.0%), partially offset by a 2.9% increase in office construction.
By sector, private construction spending fell 0.5%, weighed down by a 3.2% decrease in new single-family residential construction, while public construction spending slipped 0.2% over the month. For the first seven months of 2026, total construction spending was down 3.5% from the same period a year earlier, at $1.245 trillion.
