Construction spending edged down 0.1 percent in June from the previous month and declined 3.2 percent compared to a year ago, according to an analysis by the Associated General Contractors of America of a new government report. Association officials cautioned that weakness is spreading across much of the construction market and urged federal officials to avoid policies that would further increase costs or discourage private investment. “We're beginning to see weakness spread across much of the construction market," said Macrina Wilkins, the association's director of market insights. "While data centers and a handful of other segments remain bright spots, the largest public category—highway construction—is at risk of a sharp decrease if Congress fails to renew federal funding before the current law expires at the end of next month.” Construction spending totaled $2.167 trillion at a seasonally adjusted annual rate in June. That figure is 0.1 percent below the revised May rate and 3.2 percent below the June 2025 level. Private nonresidential construction increased 0.1 percent in June, but fell 4.7 percent compared to June 2025. Manufacturing construction continued to weaken sharply, dropping 22.0 percent over the past 12 months. Commercial construction decreased 1.3 percent from May and was 5.3 percent lower than one year ago, while healthcare construction fell 4.6 percent and educational construction declined 4.3 percent. Private “office” construction, which includes data centers in the government release, rose 2.8 percent for the month and was 15.1 percent higher than a year earlier. Data center construction increased 46.0 percent over the past 12 months, while other private office construction tumbled 11.6 percent. Private residential construction decreased 0.3 percent for the month and was down 4.7 percent compared to June 2025. Single-family construction slipped 0.6 percent from May and remained 3.3 percent below year-earlier levels. Multifamily construction also declined 0.7 percent for the month and remained 1.5 percent lower than one year earlier. Public construction spending remained flat in June and was 1.7 percent higher than one year earlier. The largest public category, highway and street construction, declined 0.1 percent from May but was 3.1 percent higher than a year earlier. Public infrastructure continues to provide an important source of construction activity as weakness spreads across much of the private construction market. Association officials noted that highway and other public infrastructure projects continue to support construction activity even as many private construction categories weaken. They urged Congress to complete work on a new highway and transit authorization bill before the current law expires on September 30 in order to provide greater certainty for contractors and avoid shutting down projects essential for improving safety and reducing congestion. “The latest spending data makes clear that public infrastructure is helping offset broader weakness in the construction market,” said Jeffrey D. Shoaf, the association's chief executive officer. “Congress should build on that momentum by renewing the federal highway and transit program before the current law expires. Providing contractors with long-term certainty will help keep infrastructure projects moving and support the entire economy, not just contractors and construction suppliers.”

Construction employment increased in 33 states and the District of Columbia from June 2025 to June 2026, while 28 states and D.C. added jobs between May and June, according to an analysis of new federal data released by the Associated General Contractors of America. Association officials cautioned, however, that several policy developments, including uncertainty surrounding tariffs, highway funding, and data center development, could undermine future construction demand.  “Construction employment gains were more widespread in June, with more states adding jobs than losing them over both the month and the year,” said Macrina Wilkins, the association's director of market insights. “States benefiting from strong infrastructure, energy, manufacturing, and data center investment continue to lead construction hiring, while higher financing costs remain a headwind for several private construction sectors.”  Between June 2025 and June 2026, 33 states and the District of Columbia added construction jobs, 14 states shed jobs, and employment was unchanged in Delaware, Mississippi and North Dakota. Texas added the most construction jobs (24,800 jobs, 2.7 percent), followed by North Carolina (15,500 jobs, 5.6 percent), Ohio (11,900 jobs, 4.6 percent), Illinois (10,700 jobs, 4.5 percent) and Louisiana (10,500 jobs, 7.7 percent). Louisiana posted the largest percentage gain over 12 months, followed by the District of Columbia (6.6 percent, 900 jobs), Minnesota (6.3 percent, 8,900 jobs), North Carolina and Missouri (5.5 percent, 8,300 jobs).  California lost the most construction jobs from June 2025 to June 2026 (-15,400 jobs, -1.7 percent), followed by Virginia (-4,600 jobs, -2.0 percent), New York (-4,300 jobs, -1.1 percent), Georgia (-4,100 jobs, -1.7 percent) and Michigan (-3,600 jobs, -1.8 percent). The largest percentage loss was in New Hampshire (-2.5 percent, -800 jobs), followed by Virginia, Michigan, New Jersey (-1.8 percent, -3,000 jobs) and Rhode Island (-1.8 percent, -400 jobs).  For the month, industry employment increased in 28 states and the District of Columbia, declined in 20 states, and was unchanged in South Carolina and West Virginia. Texas added the most construction jobs (5,200 jobs, 0.6 percent), followed by Ohio (3,900 jobs, 1.5 percent), Massachusetts (3,700 jobs, 2.2 percent), North Carolina (2,900 jobs, 1.0 percent) and Louisiana (2,000 jobs, 1.4 percent). The largest percentage gain occurred in New Mexico (3.2 percent, 1,700 jobs), followed by Massachusetts, North Dakota (2.0 percent, 600 jobs), Alaska (1.6 percent, 300 jobs) and Ohio.  California lost the most construction jobs from May to June (-4,100 jobs, -0.5 percent), followed by New York (-3,900 jobs, -1.0 percent), Washington (-2,100 jobs, -1.0 percent), Wisconsin (-2,100 jobs, -1.4 percent) and Minnesota (-1,100 jobs, -0.7 percent). The largest percentage loss was in Montana (-1.6 percent, -600 jobs), followed by Wisconsin, Rhode Island (-1.3 percent, -300 jobs), New York and Washington (both -1.0 percent).  Association officials said that several policy developments could undermine some of the industry's strongest sources of demand. Growing state and local resistance to data center development, uncertainty surrounding electric power availability for new projects, the lack of progress in Congress on a long-term highway and transit bill, and continued uncertainty surrounding tariffs on construction materials all threaten future construction activity.  "Construction firms continue to add workers where demand remains strongest," said Jeffrey D. Shoaf, the association's chief executive officer. "Policymakers can help sustain that momentum by providing certainty for infrastructure investment, supporting the expansion of our nation's energy capacity, and avoiding policies that increase the cost of key construction materials and create unnecessary uncertainty for construction employers."