Both residential and non-residential spending declined year-over-year, by 4.7% and 3.2%, respectively. Since May, residential spending fell 0.3%, while non-residential spending rose 0.1%, largely spurred by data center construction.

“We're beginning to see weakness spread across much of the construction market," Macrina Wilkins, director of market insights at Associated General Contractors of America, said in a statement. 

"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,” Wilkins added.

Data center spending rose 7% in June when compared to the previous month and a whopping 46% since June 2025.

“Contractors working on data centers continue to benefit from this momentum,” said Basu. “According to ABC’s latest Construction Backlog Indicator, the 13% of ABC members under contract to work on data centers have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months).”

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