U.S. construction spending slipped in June as first-half activity fell

U.S. construction spending edged down in June and remained below its level a year earlier, according to new federal data released Monday that showed a weaker first-half comparison with 2025.

The U.S. Census Bureau reported August 3 that total construction spending reached a seasonally adjusted annual rate of $2.1665 trillion in June 2026. That was 0.1% below a revised May estimate of $2.1685 trillion and 3.2% below the June 2025 estimate of $2.2377 trillion.

During the first six months of 2026, construction spending totaled $1.0469 trillion, down 3.5% from the $1.0845 trillion recorded during the same period in 2025. The figures offer a national snapshot of activity connected to housing, commercial development, manufacturing, public facilities and transportation projects, but they do not establish a full-year result or prove that a sustained trend is in place.

What changed in June

Private construction spending fell 0.1% from May to a seasonally adjusted annual rate of $1.6225 trillion. Residential construction declined 0.3% to $877.1 billion.

Private nonresidential construction moved in the opposite direction, rising 0.1% from the revised May estimate to an annual rate of $745.3 billion. That category covers privately financed projects outside residential construction.

The sector split is important: June’s data show a modest decline in residential construction alongside a slight increase in private nonresidential work, rather than a uniform move across all private building activity.

Public construction was essentially flat

Public construction spending was virtually unchanged in June, at a seasonally adjusted annual rate of $544.1 billion compared with a revised $544.0 billion in May.

Educational construction was also virtually unchanged, at $113.1 billion. Highway construction declined 0.1% to $150.9 billion.

Those figures do not support describing public construction as either accelerating or collapsing. They point to a largely stable month, with a small reported decline in highway construction.

How to read the first-half decline

The 3.5% January-through-June decline is a cumulative comparison with the first half of 2025. It is larger than the reported month-to-month change for June, but the release alone does not show that the same rate of decline occurred in every month.

The monthly figures are reported at a seasonally adjusted annual rate. That does not mean $2.1665 trillion was spent during June itself. Instead, it is an estimate of what the June pace would equal if it continued for a full year, after adjustment for seasonal patterns.

The Census Bureau also publishes margins of error. The reported 0.1% monthly decline in total construction spending carries a margin of error of plus or minus 0.8 percentage points, so readers should be cautious about treating that small change as statistically decisive on its own. The estimates may also be revised as additional information becomes available.

What to watch next

Later revisions to the June and May estimates will help clarify the direction of construction activity. Upcoming housing, employment and broader economic data will provide additional evidence about whether the first-half weakness extends into related parts of the economy.

For now, the federal release offers three clear takeaways: construction spending was slightly lower in June than in May, the first half of 2026 lagged the first half of 2025, and residential, private nonresidential and public construction did not all move in the same direction.

Sources

• U.S. Census Bureau: Monthly Construction Spending, June 2026