U.S. Non-Residential Construction Spending Rose in August

Non-residential construction activity increased by 0.5 percent across the United States during August 2026.

Updated on Oct. 7, 2026 in Construction

Bold flat-color editorial illustration featuring power cables and steel beams, representing growth in national construction spending. — Non-residential construction spending in the United States grew by 0.5 percent in August 2026, driven by significant investments in power infrastructure. AI Illustration. Upload story photo >

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Data from August 2026 shows a 0.5 percent increase in non-residential construction spending across the United States. This uptick follows a broader economic trend, with national GDP growing by 2.2 percent in the second quarter of 2026.

Why it matters

Rising construction costs and shifting sector performance highlight the challenges facing national infrastructure and commercial development. These trends are heavily influenced by current economic growth patterns, specifically those driven by data center projects and corporate profitability.

Office construction spending surged 24.6 percent while commercial projects fell 5.4 percent in August 2026. Since February 2020, steel mill product prices have climbed 103.4 percent, with overall construction materials up 55.6 percent.

The details

Activity varied significantly across sectors, as power infrastructure grew by 8.5 percent and highway and street projects rose by 4.6 percent. This movement occurs against a backdrop of steep price increases for essential materials like nonferrous wire and cable, which jumped 97.1 percent since early 2020.

February 2020 served as the baseline month for calculating material price increases.
The U.S. GDP grew 2.2 percent during the second quarter of 2026.
Non-residential construction spending rose 0.5 percent in August 2026.

Market Landscape

The construction sector is currently defined by a divergence between high material costs and the specialized demand for data centers and power infrastructure. These figures mirror a shift where traditional commercial builds struggle while technology-adjacent sectors maintain growth.

Rising costs for critical materials like steel and wiring may lead to higher prices for future building projects and potential delays in commercial availability. Consumers and businesses should anticipate that these input price pressures could eventually influence the broader cost of infrastructure and commercial real estate.

The takeaway

The construction industry remains in a delicate balance as high input prices for steel and wire force developers to prioritize specific sectors like power and data centers. Stakeholders should monitor material price volatility closely as it remains the primary driver of project budget adjustments.