This page tracks total U.S. construction spending, covering residential, nonresidential, and public construction projects. Construction spending is a major driver of economic activity, employment, and demand for materials. It provides insight into both private‑sector investment and government infrastructure activity.
Because construction is interest‑rate sensitive, this indicator often reacts strongly to changes in mortgage rates and long‑term Treasury yields.
What This Chart Shows
- Total spending across residential, commercial, industrial, and public construction
- Cyclical peaks during housing booms and declines during recessions
- Sensitivity to interest rates, credit conditions, and government budgets
- Long‑term growth driven by population, infrastructure needs, and economic expansion
- Divergence between residential and nonresidential spending during different cycles
Key Takeaways
- Construction spending is a major component of economic growth
- Rising spending signals strong investment and housing demand
- Declines may indicate tightening financial conditions or slowing economic activity
- Residential spending is highly sensitive to mortgage rates
- Public construction can offset private‑sector weakness during downturns
Data Source
U.S. Census Bureau via FRED®