US construction spending slips slightly in July

Construction spending in the US dipped marginally in July, as elevated mortgage rates continued to pressure the housing market.

Construction spending edged down 0.1% to an annualized rate of $2.13 trillion, compared to a revised $2.14 trillion in June, according to a report released today, Sept. 2 by the Census Bureau of the Department of Commerce.

On a year-on-year (YoY) basis, construction spending fell 2.8% in July. Total spending in the first seven months of 2025 reached $1.23 trillion, down 2.2% YoY.

Private construction spending declined 0.2% month-on-month (MoM) to $1.62 trillion, despite a 0.1% uptick in residential construction. Non-residential spending, however, dropped 0.5%.

Public construction spending rose 0.3% to $515.8 billion, even as spending on educational facilities and highway projects each slipped 0.1%.