U.S. Construction Spending Falls for Eighth Month

U.S. construction spending fell by 0.4% in June 2025, marking the eighth consecutive monthly decline and missing market expectations for stability. Private construction spending dropped 0.5%, led by a 0.7% fall in residential building and a 1.8% plunge in single-family housing projects, with higher mortgage rates and elevated housing inventories dampening demand. Year-over-year, total construction spending was down 2.9%, reflecting continued weakness in both private residential and nonresidential sectors. Public construction spending rose modestly by 0.1%, buoyed by increases in educational and highway projects. The decline comes as the Federal Reserve has paused interest rate cuts in response to persistent inflation concerns. The data highlight ongoing challenges for new real estate development and investment in the U.S. construction industry.