WASHINGTON, D.C. — Total U.S. construction spending exceeded market expectations in April 2026, posting its second consecutive monthly gain despite ongoing interest rate pressures and broader economic uncertainty.
According to data released Monday by the U.S. Census Bureau, the seasonally adjusted annual rate of construction spending reached $2.1724 trillion in April, up 0.4% from the revised March estimate of $2.1645 trillion.
Economists surveyed by Reuters had forecast a more modest increase of 0.2%.
On a year-over-year basis, total construction spending rose 0.9% compared with April 2025, highlighting continued resilience across key segments of the industry.
Construction Spending Snapshot: April 2026
| Construction Sector | SAAR | Month-over-Month Change | Year-over-Year Change |
|---|---|---|---|
| Total Construction | $2.1724 Trillion | +0.4% | +0.9% |
| Private Residential | $909.9 Billion | +0.8% | — |
| Single-Family Residential | — | +1.4% | — |
| Multi-Family Residential | — | -0.3% | — |
| Private Nonresidential | $729.8 Billion | -0.2% | -2.1% |
| Public Construction | $532.7 Billion | +0.4% | +3.7% |
| Highway and Street Construction | $149.6 Billion | +0.4% | — |
| Educational Construction | $113.7 Billion | +0.6% | — |
Residential Construction Continues to Drive Growth
Private residential construction was the strongest contributor to April’s overall gains, increasing 0.8% during the month.
Single-family housing construction advanced 1.4%, more than offsetting a modest 0.3% decline in multifamily projects. The continued strength of single-family construction suggests that demand for housing remains supportive despite elevated borrowing costs.
Builders, however, continue to operate in a challenging environment marked by higher mortgage rates, labor shortages, and ongoing cost pressures. Mortgage rates climbed to their highest levels in several months during May, creating additional affordability challenges for prospective homebuyers.
Private Nonresidential Construction Remains Under Pressure
Private nonresidential construction spending declined 0.2% in April to an annual rate of $729.8 billion, extending a period of softness across parts of the commercial and industrial market.
The category is now 2.1% below its level from a year earlier, reflecting cautious private-sector investment amid higher financing costs and economic uncertainty.
While certain segments continue to attract investment, overall nonresidential activity has yet to regain broad-based momentum.
Public Infrastructure Spending Provides Stability
Public construction spending continued to serve as a key source of support for the industry, increasing 0.4% in April to $532.7 billion. Compared with a year ago, public-sector spending is up 3.7%.
Infrastructure projects remained particularly active. Spending on highways and streets rose to an annual rate of $149.6 billion, while educational construction increased to $113.7 billion.
The steady flow of public investment has helped offset weakness in portions of the private construction market, providing contractors with a relatively stable pipeline of projects.
Outlook for the Rest of 2026
April’s report offers further evidence that the U.S. construction sector remains on stable footing despite a challenging economic backdrop. However, elevated interest rates continue to pose risks for private development activity, particularly in interest-sensitive segments of the market.
Industry participants will be closely watching future Federal Reserve decisions, borrowing costs, and project financing conditions as they assess opportunities for the second half of the year.
CCE News Analysis
The latest construction spending figures suggest the U.S. industry is showing greater resilience than many economists anticipated.
Housing construction and public infrastructure spending continue to provide important support, helping offset weakness in parts of the private nonresidential market.
As 2026 progresses, contractors with exposure to multiple end markets may be best positioned to navigate an increasingly uneven construction landscape.
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Top 10 Mega Construction Projects in the United States 2026
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