Construction spending in the US fell 0.5% month-over-month to a seasonally adjusted annual rate of $2,158 billion in July 2026, following a upwardly revised flat reading in June and missing market expectations of a flat reading. Residential construction spending fell 1.3%, while nonresidential spending edged up 0.1%. Within the nonresidential sector, the largest declines were recorded in conservation and development (-1.4%), manufacturing (-1%) and public safety (-1%). These were partly offset by gains in office construction (2.9%). Meanwhile, both private (-0.5%), dragged by a 3.2% decline in new single family residential construction spending, and public (-0.2%) construction spending fell over the month. In the first seven months of 2026, total construction spending fell 3.5% from the same period a year earlier to $1.245 trillion.