US Construction Spending Climbed 0.9% in August 2026

Construction spending rose 0.9% in August 2026 to a seasonally adjusted annual rate of $2,203.1 billion, up from a revised July estimate of $2,184.5 billion, according to the Department of Commerce.

The monthly gain has not closed the annual gap. The August figure sits 1.7% below the August 2025 estimate of $2,242.0 billion, the Commerce Department reported on October 1, 2026.

The year-to-date picture shows the same shortfall. During the first eight months of 2026, construction spending totaled $1,450.4 billion, 3.1% below the $1,496.6 billion recorded for the same period in 2025.

Private Sector Drove the August Increase

Private construction spending reached a seasonally adjusted annual rate of $1,655.3 billion in August, 1.1% above the revised July estimate of $1,637.7 billion.

Residential construction climbed to $882.3 billion, a 1.1% increase over the revised July figure of $872.7 billion. Nonresidential construction posted a 1.0% gain, reaching $773.0 billion in August compared with $765.0 billion in July.

Public Spending Barely Moved

Public construction spending grew far more slowly. The August seasonally adjusted annual rate came in at $547.8 billion, just 0.2% above the revised July estimate of $546.8 billion.

Educational construction edged up 0.1% to $113.1 billion from $112.9 billion in July. Highway construction also gained 0.1%, reaching $150.6 billion against a revised July estimate of $150.5 billion.

What the Numbers Signal

The August data points to a private-sector-led recovery in momentum. Residential and nonresidential private spending both grew at more than five times the pace of public outlays. Still, the sector remains below its 2025 levels on every annual measure the Department of Commerce tracks. Sustained monthly gains at the August pace would need to continue through the fall before the year-to-date deficit narrows meaningfully.