Early 2026 Spending Signals Market Stabilization and Modest Growth
Recently, the US Census released the results of its monthly Value of Construction Put in Place Survey. The survey provides estimates of the total dollar value of construction work done in the U.S. This data includes design and construction spending for public and private projects.
The seasonally adjusted annual rate of $2.19 trillion for March 2026 represents a monthly change of 0.6% and an increase of 1.6% year over year (not adjusted for inflation). The first quarter of 2026 shows the industry is in a stronger position than last year, as both Private and Public spending are up 1.0% and 3.8% year over year, respectively.
Source: US Census Value of Construction Put in Place Survey May 7, 2026 release
The growth in total construction spending mirrors general US economic growth, though somewhat muted. Advanced estimates for real US GDP growth for the 1st quarter of 2026 are 2.0%.
Data shows that in aggregate, the industry has been flat since April, 2024, with a mix of performance amongst subsectors. Residential construction is seeing a stronger start to the year, up 3.5% year over year, compared to the Nonresidential market which is up 0.2%.
Source: US Census Value of Construction Put in Place Survey May 7, 2026 release
With respect to year-over-year growth in individual markets, 2026 is showing a stabilization of 2025 trends. At the end of 2025, 7 out of 17 markets declined year over year. Currently, only 1 market, Manufacturing, has year-to-date declines compared to 2025. It is important to note though that total spending on Manufacturing still makes it the largest Nonresidential construction market. Thus its year-over-year declines are more a function of how much was spent previously.
Sewage and waste disposal continues to be a top growth market after growing all of 2025 as well. Amusement and recreation has double-digit year-to-date growth with strength in all sub-markets except movie theaters. While not a top 5 growth market, the Office sector is just behind Lodging (5.4%) in year-to-date growth due to Data Centers being included in this classification. Year-to-date spending on Data Centers totals $11.4b, up 32% from last year.
Three sectors that struggled the previous 2 years due to the higher interest rate environment appear to be stabilizing in the near term. Residential, Commercial, and Lodging are all experiencing positive year-to-date growth, even with Residential and Commercial among the lowest growth markets.
