ENCONSTRUCTION, REAL ESTATE & PROJECT FINANCE · OCTOBER 2, 2026
Construction Spending Rises 0.9% as Private Nonresidential Activity Gains
Census estimated August construction spending at a $2.203 trillion annual rate, up 0.9% from July, with private residential and private nonresidential spending both increasing.
What Census released on October 1
Source publication date: October 1, 2026. The U.S. Census Bureau estimated August construction spending at a seasonally adjusted annual rate of $2,203.1 billion, 0.9% above the revised July rate of $2,184.5 billion. The August estimate was 1.7% below August 2025, and spending during the first eight months of 2026 was 3.1% below the same period in 2025. The monthly change carried a margin of error that included zero, so it should be read with the published uncertainty and potential revisions.
- 01Total spending rose 0.9%
- 02Private construction rose 1.1%
- 03Annual total remained 1.7% lower
Private construction increased across residential and nonresidential work
Private construction spending was estimated at a $1,655.3 billion annual rate, 1.1% above July. Private residential construction was $882.3 billion, up 1.1%, while private nonresidential construction was $773.0 billion, up 1.0%. These national aggregates measure value put in place; they do not establish the cost, completion risk, leasing, demand, or value of a specific development or renovation.
Public construction changed little
Public construction was estimated at a $547.8 billion annual rate, 0.2% above July. Educational construction was $113.1 billion and highway construction was $150.6 billion, each 0.1% above the prior month. Public procurement, funding, payment timing, bonding, retainage, and contractor exposure can vary substantially by project and jurisdiction despite the national totals.
Practical borrower takeaway
Refresh hard and soft costs, committed contracts, change orders, contingency, equity, permits, draw timing, retainage, interest carry, and completion schedule using project-level evidence. Reconcile the construction budget to sources and uses and the permanent-loan exit. Stress-test delays, cost escalation, slower lease-up or sales, and appraisal shortfalls; do not infer project feasibility or collateral value from national spending growth alone.
Developers, contractors, and property borrowers should update project budgets with current bids and contingencies, then test draw timing, equity, lease-up, and debt service against property-specific conditions rather than national spending growth.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.