Construction spending fell 3.2% year-over-year in June, with data centers as the industry's only support
Based on data released by the U.S. Census Bureau in August, total construction spending in June decreased by 3.2% year-over-year, and private nonresidential spending fell by 4.7% year-over-year, but data center construction continued to support the industry. The chief economist at ABC noted that private nonresidential spending has declined by more than 7% since its peak in April 2025, while AGC urged the federal government to renew infrastructure funding to avoid a significant downturn in highway construction.
Briefing at a Glance
- Total construction spending in June fell 3.2% compared with the same period last year, according to data released Monday by the U.S. Census Bureau. The seasonally adjusted annual rate of construction spending for the month was estimated at $2.16 billion.
- According to an analysis by Associated Builders and Contractors (ABC), private nonresidential construction spending in June edged up 0.1% from the previous month but fell 4.7% year over year.
- Of the 16 categories monitored by ABC, spending declined in eight. ABC Chief Economist Anirban Basu wrote that the industry's health remains supported by data center spending.
Deep Insights
Basu noted that in April 2025, private nonresidential construction spending jumped to a seasonally adjusted record high. However, in the 14 months since then, the figure has risen only three times.
"Despite the ongoing boom in data center construction, private nonresidential construction spending has fallen more than 7% from its April 2025 peak to a seasonally adjusted annual rate of $745.3 billion," Basu said. "Notably, excluding data centers, private nonresidential construction spending declined 0.6% month over month and 7.9% year over year in June 2026."
Basu also mentioned that among ABC members with data center contracts, 13% have an average backlog of 11 months, which is two and a half months longer than the remaining 87% of members without such contracts.
In its interpretation of the report, the Associated General Contractors of America (AGC) continues to urge the federal government to reinvest in infrastructure spending. Macrina Wilkins, the association's director of market insights, said: "We are beginning to see weakness in most sectors of the construction market. Although data centers and a few other niche segments remain bright spots, the largest public category—highway construction—faces a significant risk of decline if Congress fails to reauthorize federal funding before the current law expires at the end of next month."