Construction Spending Falls 1.9% in September
Construction spending dropped month over month in September 2026, with residential construction leading the decline.
Updated on Nov. 2, 2026 in Construction
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Construction spending in September 2026 was estimated at a seasonally adjusted annual rate of $2,186.1 billion, 1.9% below the revised August estimate. The figure is also 2.7% below September 2025, and spending for the first nine months of 2026 totaled $1,649.6 billion, 2.9% below the same period a year earlier.
Why it matters
The decline signals a slowdown in the sector that accounts for a significant share of national investment activity. Residential construction, which fell 5.5% in a single month, is the weakest segment and a key indicator for housing supply.
Residential construction spending fell to $848.8 billion, 5.5% below the revised August estimate of $898.0 billion, while nonresidential spending reached $790.6 billion and public spending $546.8 billion. Private construction totaled $1,639.3 billion for the month, and the report does not explain the drivers behind the segment-level declines.
The players
U.S. Census Bureau
The federal statistical agency that compiles and publishes monthly construction spending estimates used by economists, lenders, and policymakers to track activity in the building sector.
The details
The U.S. Census Bureau reported that construction spending fell in September 2026 across private and public categories, with residential construction posting the steepest monthly drop. The estimates are seasonally adjusted annual rates and compare each month against the revised prior-month figure.
Timeline
September 2025: baseline year for the year-over-year comparison.
August 2026: revised prior-month estimate used for the monthly comparison.
September 2026: month covered by the construction spending estimate.
November 2, 2026: date the construction spending report was published.
Market Landscape
Construction spending has run below its prior-year level through the first nine months of 2026, a 2.9% shortfall that the monthly series now confirms for September. The residential drop of 5.5% in a single month is the sharpest segment-level movement in the report and places housing construction at the center of the broader slowdown.
A slowdown in residential construction can affect the availability of new homes and the cost of building projects that homeowners and contractors rely on. Buyers and renters may see the effects in future housing supply rather than immediate price changes.
The takeaway
Monthly construction spending data offers an early read on housing and infrastructure activity, so tracking the residential segment can help readers anticipate changes in the building market. Comparing each month against the revised prior-month figure helps separate lasting trends from one-time swings.
Further reading
Track more construction industry coverage for context on how spending trends shape the sector.
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