Overview
- The Census Bureau reported that total construction spending fell 1.9% in September, missing economists' expectations for a 0.3% gain and marking a 2.7% decline from a year earlier.
- The setback was concentrated in private residential work, which sank 5.5% and drove most of the monthly fall while spending on private nonresidential projects rose 1.1%.
- August's initially reported 0.9% rise was revised up to a 2.0% gain, so September's drop largely reversed the prior month's upward revision.
- Analysts link the residential pullback to higher mortgage rates and rising materials costs, with Freddie Mac data showing about a 125 basis‑point rise in the 30‑year fixed rate since late February, a shift that can curb renovations and homebuilding demand.
- The report measures dollar value of work completed and is subject to revisions, so economists say the print suggests a softer near‑term growth contribution but must be read cautiously as prices and later revisions can change the picture.