US construction starts rise 25.6% in July amid spending decline

US construction data for July shows conflicting trends between project starts and total spending. According to the Dodge Construction Network, total construction starts rose 25.6% in July to a seasonally adjusted annual rate of $1.79 trillion. This increase was driven largely by a 57.7% jump in nonresidential building starts, including a 107.9% surge in offices and data centers.

However, US Census Bureau data indicates that total construction spending fell 0.5% in July to a seasonally adjusted annual rate of $2,157.6 billion. This decline was primarily driven by a 1.3% drop in private residential spending. While private nonresidential spending rose slightly by 0.4%, overall spending remains down 3.8% compared to July 2025.

Industry analysts note that the market is experiencing volatility driven by megaprojects, with strength found in specific sectors like data centers and multifamily housing, while other areas such as healthcare facilities and retail stores face declines.