Growth Gets Selective as Construction Spending Declines
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.
U.S. construction spending continues a gradual decline, with the seasonally adjusted annual rate of $2.16 trillion for July 2026, representing a monthly change of -0.5% and decrease of -3.8% year over year (not adjusted for inflation). This now represents 12 consecutive months of year-over-year decline in total construction spending. Total Private construction is down -5.5% compared to Public spending which is up 1.7% year over year.
Source: US Census Value of Construction Put in Place Survey September 1, 2026 release
The decline in total construction spending mirrors a general U.S. economic slowdown, with revised estimates for real U.S. GDP growth for the 2nd quarter of 2026 at 1.5%, which is down from 2.1% for 2026 Q1.
Data shows that in aggregate, construction spending peaked in February 2025. Below that headline number, performance in individual markets has shown considerable variability. The Residential sector continues to struggle with higher borrowing costs and is down -4.1% year to date. The Nonresidential market struggles as well, down -3.1% year to date.
Source: US Census Value of Construction Put in Place Survey September 1, 2026 release
With respect to year-to-date growth in individual markets, 2026 is showing a continued divide with 10 markets experiencing growth and 7 experiencing a contraction.
- The Power market continues to be the largest nonresidential market and has grown 3.6% year to date.
- The Office sector is a top growth market, up 8.2% year to date. This is due to the substantial growth in Data Centers.
- Data Centers are up 34.8% compared to last year for a total of $37.2b year to date.
- Religious, Conservation and development, and Amusement and recreation round out the 5 largest year-to-date increases.
Sectors that are in decline are lead by Manufacturing, which is down 22.2% year to date, though is the 2nd largest nonresidential market with total spending at $101.1m year to date. Sectors affected by higher costs of capital due to higher interest rates continue to contract, including Residential, Commercial, and Lodging. Public Safety is also negative year to date.
