US construction spending increased 0.9% month over month in August 2026 to a seasonally adjusted annual rate of $2,203 billion, the highest level since February 2024. July’s decline was revised to 0.1%, while analysts had expected no change. Private construction spending rose 1.1%, including a 1.1% increase in residential investment that likely reflected renovations. Private nonresidential investment gained 1%, with office outlays surging 4.6% and power-plant spending increasing 0.9%. Single-family construction rose 0.2% in August but fell 3.5% from a year earlier. Public construction spending increased 0.2%, as state and local outlays rose 0.3% while federal spending declined 0.7%. Total construction spending fell 1.7% year over year, while elevated mortgage rates continued to pressure homebuilding.