Construction spending in US increased in March 2026

US construction spending rose 1.3% year‑on‑year in March 2026, marking a modest recovery after small declines earlier in the year. Growth is concentrated in data‑centre and infrastructure projects—data‑centre spending jumped 32% in 2025 to $41.0bn and has nearly quadrupled since 2021—helping offset weakness in commercial, manufacturing and some retail segments. Excluding data centres, non‑residential construction contracted about 1%. A pipeline of 681 data‑centre projects (>$25m) implies $1.5trn planned expenditure, but these projects are straining power grids and prompting moratorium proposals in some states. Residential activity improved modestly, supported by single‑ and multi‑family building, yet affordability, higher borrowing and material costs, labour shortages and permit weakness constrain broader expansion. Overall, the sector’s medium‑term outlook is moderately positive but remains dependent on financing, labour availability and supply‑chain pressures, with concentrated growth in technology‑led and public infrastructure projects likely to drive sector performance.