• Prior was +0.3%

The US Census Bureau released its monthly construction spending report on February 27, 2026, covering data through December 2025. The release was delayed from its original schedule due to the 43-day government shutdown in late 2025.

Construction spending in December 2025 was estimated at a seasonally adjusted annual rate of $2,168.8 billion, up 0.3% from November’s $2,163.1 billion. This marked the first monthly increase after three consecutive months of declines. Despite the uptick, the December figure was 0.4% below the year-ago level, and full-year 2025 spending totaled $2,164.4 billion, down 1.4% from $2,194.8 billion in 2024.

The monthly gain was driven by a rebound in single-family homebuilding and continued strength in home renovations. Private construction spending rose 0.5%, with residential construction climbing 1.5%. New single-family projects jumped 1.5% and multifamily edged up 0.1%, while private nonresidential construction, including offices and factories, fell 0.7%.

Public construction spending declined 0.5% to a $521.7 billion annual rate. Educational construction slipped 0.8% and highway spending dipped 0.3%. State and local outlays fell 0.7%, though federal project spending rose 1.6%.

Broader headwinds continue to weigh on the sector, including elevated mortgage rates, higher material costs tied to tariffs on imports, and persistent labor shortages. For all of 2025, residential construction totaled $905.2 billion, down 2.6% from 2024, while nonresidential came in at $742.4 billion, off 3.1%. Public construction was a relative bright spot, rising 3.6% to $516.8 billion.

This article was written by Adam Button at investinglive.com.