Construction spending rises

U.S. spending on residential and nonresidential construction projects increased slightly in April from month-earlier and year-earlier levels, though development growth remained sluggish by historical standards for most types of construction in the early months of 2026.

The Commerce Department said April spending totaled just over $2.17 trillion, rising about 0.4% from March and beating the year-earlier level by 0.9%, according to seasonally adjusted annual figures. Residential construction increased 0.8% from the previous month and rose 1.7% from a year earlier, as nonresidential spending declined 0.2% for the month and fell 2.1% for the year.

Analysts at Associated General Contractors of America said highway construction has bolstered nonresidential spending for the past several months. The trade group noted manufacturing project spending dropped 18.5% from a year earlier, as office construction fell 5.5% and warehouse construction declined 1.6%.

Those declines were partly offset by a 28% annual rise for data center projects, a 6% increase for electric power projects and a 5.9% rise for retail construction, the contractor group said in a Monday statement.