Construction spending in the U.S. rose by more than expected in the month of July, according to a report released by the Commerce Department on Tuesday, with an increase in spending on private construction more than offsetting a drop in spending on public construction.
The report said construction spending rose 0.6 percent to a seasonally adjusted annual rate of $900.8 billion in July. Economists had been expecting spending to increase by about 0.3 percent.
Revised data showed that construction spending was roughly unchanged in June following a 2 percent increase in May. Spending was originally said to have fallen by 0.6 percent in June.
The increase in construction spending in July came as spending on private construction rose by 0.9 percent to an annual rate of $631.4 billion.
Spending on residential construction increased by 0.6 percent to an annual rate of $334.6 billion, while spending on non-residential construction surged up by 1.3 percent to an annual rate of $296.8 billion.
Meanwhile, the report said spending on public construction dropped by 0.3 percent to an annual rate of $269.4 billion in July.
The Commerce Department said spending on state and local construction dipped 0.4 percent to an annual rate of $245.4 billion, while spending on federal construction rose 1.1 percent to $24.0 billion.
For comments and feedback contact: editorial@rttnews.com
Forex News
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.