Construction spending picked up in August, the Census Bureau said Monday.
The Census Bureau reported that construction outlays reached an annualized pace of $2.17 trillion, up 0.2 percent from July’s revised $2.165 trillion figure. The result beat economist expectations for a 0.2 percent decline.
The report, delayed by the government shutdown, showed resilience in the construction sector after forecasts had anticipated a slowdown.
Private-sector construction spending led the gains, expanding 0.3 percent to a $1.652 trillion annualized pace. Residential construction was the strongest performer, rising 0.8 percent to $914.8 billion annually. The increase was primarily driven by multifamily construction and home improvements, while single-family construction spending slipped 0.4 percent. The multifamily gain marks a pause in the downward trend that began in mid-2023. The overall residential showing indicates builders remain active in adding housing supply, a positive signal for affordability as new inventory comes to market.
“Private residential construction spending inched up 0.8 percent in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements. However, total spending was 2 percent lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates,” Na Zhao, a principal economist at the National Association of Homebuilders wrote in a blog post focused on the report.
Nonresidential construction slipped 0.3 percent to $737.3 billion, while public construction spending held essentially flat at a $517 billion annualized pace. Educational construction rose 0.6 percent, while highway construction declined modestly by 0.2 percent.
On a year-over-year basis, total construction spending remains down 1.6 percent compared to August 2024, though the monthly acceleration suggests the sector may be stabilizing after earlier weakness.
The Census Bureau report represents among the first batch of catch-up statistics from federal agencies working through a backlog created during the six-week government shutdown. The bureau did not provide a timeline for releasing September construction-spending data.
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