U.S. construction spending rises in March, signaling demand boost for Home Depot

The latest construction-spending figures did not scream boom, but they pointed to more work flowing into the channels Home Depot depends on: jobsite orders, install appointments, delivery runs and Pro pickups.

The U.S. Census Bureau said March 2026 construction spending was estimated at a seasonally adjusted annual rate of $2.1855 trillion, up 0.6% from February and 1.6% from March 2025. Private construction spending rose 0.8% from the prior month to $1.6590 trillion. For the first three months of 2026, construction spending totaled $479.4 billion, up 0.3% from the same period a year earlier. The March release was issued on May 7, 2026, the same day Census said it had rescheduled the February release.

For Home Depot associates, the significance is less about the headline rate and more about where the work lands first. A stronger construction backdrop usually shows up in lumber, fasteners, concrete, plumbing, paint and other job-critical categories before it shows up anywhere else. In stores near active residential projects, that can mean more contractor traffic, more pressure on the Pro desk and more urgency around replenishment. In markets tied more closely to commercial or institutional work, it can mean heavier demand for specialty ordering, jobsite delivery and Pro fulfillment.

That matters because Home Depot built its business around three customer groups: DIY shoppers, Pro customers and Do-It-For-Me installation customers. The company said it is the world’s largest home improvement retailer, with fiscal 2025 net sales of $164.7 billion, earnings of $14.2 billion and more than 2,300 stores across the U.S., Canada and Mexico. Its investor materials also stress that knowledgeable associates and on-shelf availability are critical to the store experience, a reminder that demand only helps if the right product is on hand and the right associate is available to move a project forward.

The company’s recent sales trends underline how closely those project flows and store execution are linked. Home Depot reported third-quarter fiscal 2025 sales of $41.4 billion, up 2.8% from a year earlier, helped by about $900 million from the GMS Inc. acquisition. Fourth-quarter fiscal 2025 sales were $38.2 billion, down 3.8% year over year in a 13-week quarter versus 14 weeks in the prior year. The construction data will not guarantee a surge, but it does suggest the pipeline of work remains active enough to keep contractor conversations, install planning and delivery volume in motion.