U.S. Construction Spending Plunges 1.9% in September, Missing Forecasts

U.S. construction spending fell 1.9% in September to an annualized $2.186 trillion, sharply missing economists’ expectations of a 0.3% increase, according to the Census Bureau. Private construction spending dropped 2.4%, driven by a 5.5% decline in residential projects, while public spending slipped 0.1%. August’s increase was revised upward to 2.0% from 0.9%. Overall construction spending was down 2.7% from September 2025, signaling weakness in the construction sector.