US August Construction Spending Up 0.9% to $2.2T; Data Center Outlays Jump 7.5%

U.S. construction spending rose 0.9% month over month in August to a seasonally adjusted annual rate of $2.2 trillion, the Census Bureau reported on Oct. 1, with data center construction again driving the gains. Data center spending climbed 7.5% month over month in August and is up 73% over the past 12 months and 149% since March on an annualized basis, according to Associated Builders and Contractors. Private nonresidential spending rose 1%, while public outlays edged up 0.2%. ABC chief economist Anirban Basu said the pace of the AI-driven buildout is "difficult to contextualize." He warned that momentum will likely stay "confined to the data center and power categories," citing renewed materials and labor cost escalation and rising Treasury yields. The Associated General Contractors of America cautioned the August improvement could reverse, noting a short-term federal highway funding extension signed Oct. 1 omits key programs.