US: Construction spending stays soft in June

Research evidence excerpt

US: Construction spending stays soft in June

J P M O R G A N Global Economic Research

03 August 2026

US: Construction spending stays

soft in June

Private construction spending edged down 0.1%m/m in June, and the prior two Economic and Policy Research

months were also revised lower. On a year-ago basis, total construction spending Bennett Parrish

is now running 3.2% below June 2025, with private construction down 4.8%oya. (1-212) 622-9003

While last week’s first estimate from the BEA suggested that real residential bennett.parrish@jpmchase.com

investment managed a 1.5%ar gain last quarter, high mortgage rates and JPMorgan Chase Bank NA

inventories are likely to keep a lid on investment in the near future. Nonresidential Tushar Komali

structures contracted 5.0%ar in 2Q, with strong data-center building still only a (91 22) 6157-3153

tushar.komali@jpmorgan.com

small share of the broader sector. J.P. Morgan India Private Limited

New private residential spending declined 0.3%m/m in June, with continued

weakness in the new single-family segment, which fell 0.6% on the month; multi-

family spending weakened 0.7%. The single-family pullback is consistent with

elevated mortgage rates and affordability constraints biting a highly rate-sensitive

segment, and with builders remaining cautious given elevated inventories of

completed new homes. While real residential investment rose 1.5%q/q, saar in 2Q,

its first gain in six quarters, we see reasons for caution going forward.

Private nonresidential spending nudged up 0.1% in June. Data-center spending

continued to climb, up another 7.0%m/m (+45.8%oya), remaining a clear bright

spot. Manufacturing construction, meanwhile, fell another 1.2% on the month and

is down 21.7% on a year-ago basis as CHIPS Act-related spending continues to