- Prior month +0.9% revised to +2.0%.
Details from the Census Department
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Total construction spending: −1.9% MoM, at a seasonally adjusted annual rate of $2,186.1 billion, versus August’s revised $2,227.4 billion.
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Prior month revised higher to 2.0% from +0.9%.
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Year-over-year spending: −2.7%.
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January–September spending: −2.9% versus the same period in 2025.
September components compared with August, in seasonally adjusted annual rates:
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Private construction: $1,639.3 billion vs $1,680.3 billion; −2.4% MoM.
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Private residential: $848.8 billion vs $898.0 billion; −5.5%.
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Private nonresidential: $790.6 billion vs $782.3 billion; +1.1%.
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Public construction: $546.8 billion vs $547.1 billion; −0.1%.
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Public education: $113.1 billion vs $113.1 billion; virtually unchanged.
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Public highways: $149.2 billion vs $149.7 billion; −0.3%.
US construction spending fell 1.9% in September, according to the Census Bureau’s construction spending report. The weakness was concentrated in private residential construction, where spending dropped 5.5%. That decline more than offset a 1.1% increase in private nonresidential spending.
Public construction was little changed, leaving the private sector responsible for nearly all the overall decline. The broader picture also remains soft: spending was down 2.7% from September 2025, while spending through the first nine months of 2026 was 2.9% below the comparable period last year.
Quick analysis: The residential decline is the weak spot. It points to a softer construction contribution to growth, although the increase in private nonresidential spending provides an offset. In isolation, weaker spending could weigh on Treasury yields and the dollar and support the case for easier Fed policy. However, this report measures dollar spending, so it does not separate changes in construction activity from changes in prices.
What this report measures: Construction spending tracks the dollar value of work completed on residential, commercial and public projects. Monthly figures are seasonally adjusted and expressed at an annual rate—not the amount spent in that single month—and are subject to revision. Traders monitor the report for signals about housing, business investment and economic growth.
This article was written by Greg Michalowski at investinglive.com.