US construction spending for the month of August 0.9% versus 0.0% expected

Construction spending: +0.9% MoM vs 0.0% expected. July revised to −0.1% from −0.5%. Annual spending rate: $2,203.1 billion. Year-on-year spending: −1.7%. January–August spending: −3.1% compared with the same period in 2025. August components compared with revised July levels, at seasonally adjusted annual rates: Private construction: $1,655.3 billion vs $1,637.7 billion. Up 1.1% MoM. Private residential: $882.3 billion vs $872.7 billion. Up 1.1%. Private nonresidential: $773.0 billion vs $765.0 billion. Up 1.0%. Public construction: $547.8 billion vs $546.8 billion. Up 0.2%. Public educational construction: $113.1 billion vs $112.9 billion. Up 0.1%. Public highway construction: $150.6 billion vs $150.5 billion. Up 0.1%.census.gov US construction spending came in stronger than expected in August, rising 0.9% against expectations for no change. The Census Bureau report also showed a smaller July decline, with spending now down 0.1%, revised from a 0.5% fall. census.gov. Good news all around. Private construction drove the increase, with gains in both residential and nonresidential spending. Public construction provided a smaller lift. However, the broader picture remains softer: spending was below year-earlier levels, and the first eight months of 2026 continued to trail the same period in 2025. census.gov Quick analysis: The upside surprise and upward July revision are constructive for the growth outlook. At the margin, stronger activity could support the dollar and Treasury yields while giving the Fed less reason to ease. The offset is the continued annual decline. One monthly rebound does not establish a sustained recovery, and the headline increase was within the report’s margin of error. census.gov What this report measures: Construction spending measures the dollar value of work completed on private and public construction projects. The monthly figures are seasonally adjusted and expressed at an annual rate, but are not adjusted for inflation and are subject to