Catalyst Construction Economics Hub
Know where the industry is.Know where it's headed.
Data Which Reflects Where the Industry Is Today
NOTE: On January 23rd, 2026, Catalyst hosted Dr. Anirban Basu to gain his insight on the outlook for the 2026 construction economy. Dr. Basu is the Chairman & CEO of Sage Policy Group, Inc., an economic and policy consulting firm headquartered in Baltimore, MD. Dr. Basu currently serves as the Chief Economist at the national level for the Associated Builders and Contractors (ABC). You can access the full recorded video below.
Construction Spending
U.S. Census Bureau - Construction Spending
Year-To-Date Annual Total - Seasonally Adjusted Annual Rate
March 2026 vs. March 2025
All Construction Spending: +1.6%
Public Construction: +3.6%
Private Construction: +1.0%
Residential Construction: +3.5%
Non-Residential Construction: +0.2%
Quick Analysis:
Total U.S. construction put in place reached a seasonally adjusted annual rate of $2.19 trillion in March 2026, up 0.6% from February and 1.6% above March 2025, with residential construction leading monthly gains at 1.6% and new single-family activity up 2.7% for the month. Nonresidential construction edged down 0.2% month-over-month but remains 0.2% above year-ago levels, with bright spots in office (up 7.0% year-over-year), power (up 5.3%), and amusement and recreation (up 9.8%), while manufacturing continued its notable pullback, declining 17.0% from March 2025. Public construction held relatively steady, rising 3.6% year-over-year driven by gains in sewage and waste disposal, power, and highway and street spending, reflecting continued investment in infrastructure and utilities.
Notable Increases/Decreases By Type:
- Amusement & Recreation - Spending is up 9.8% versus 2025
- Sewage and Waste Disposal - Spending is up 8.6% versus 2025
- Office - Spending is up 7.0% versus 2025
- Manufacturing - Spending is down 17.0% versus 2025
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
May 2026 vs. May 2025
Total Construction Costs: +2.4%
Building Cost Index: +3.5%
Material Cost Index: +5.3%
Skilled Labor Costs: +2.1%
Common Labor Costs: +1.3%
Quick Analysis:
ENR's May 2026 Construction Economics report shows annual cost inflation remains elevated, with the Building Cost Index up 3.5%, the Construction Cost Index up 2.4%, and materials costs up 5.3% year-over-year, with all three indexes showing modest monthly increases. Steel and lumber prices continue to reflect tariff pressures, with steel up 9.3% and lumber up 10.2% annually, while the Materials Cost Index posted its strongest monthly gain in recent months at 0.5%.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
April 2026
Construction Unemployment: 3.8%
Quick Analysis:
The April 2026 rate came in at 3.8%, down sharply from 6.7% in March and reflecting the normal seasonal surge in hiring as the peak construction season gets underway. Compared to April 2025's 5.6%, however, the rate is 1.8 percentage points lower, marking a meaningful year-over-year improvement and the best April reading since 2019. Regionally, Plains and Sun Belt states continue to report the tightest labor conditions, while parts of the Northeast show comparatively more workforce availability — though broadly, the April data suggests contractors are actively staffing up heading into summer.
http://data.bls.gov/timeseries/LNU04032231?data_tool=XGtable
Contractor Backlogs
ABC Backlog Indicator
March 2026 (1st Quarter)
National Avg. Backlog: 8.6 months
Backlog By Region:
South: 9.4 months Northeast: 8.3 months Middle States: 7.8 months West: 8.2 months
Backlog By Company Revenue:
<$30 Million: 7.7 months $30-$50 Million : 7.8 months $50-$100 Million: 10.3 months >$100 Million: 12.5 months
Backlog By Industry:
Commercial & Institutional: 8.8 months | Heavy Industrial: 6.9 months | Infrastructure: 10.1 months
Quick Analysis:
ABC's Construction Backlog Indicator rose to 8.6 months in March, up 0.5 months from February and fully recovered from January's four-year low, with contractor confidence on profit margins and staffing both above year-ago levels. Contractors with data center work continue to report notably longer backlogs (10.6 months) compared to those without (8.3 months), underscoring the outsized role that sector plays in industry workloads. All three components of ABC's Construction Confidence Index remain above 50, signaling expected growth over the next six months, though ABC's chief economist cautioned that a prolonged conflict in Iran could put continued upward pressure on oil prices and borrowing costs.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
April 2026
Architectural Billings Index (ABI): 48.3
New Design Contract Index (DCI): 48.0
Commercial/Industrial ABI: 48.9
Institutional ABI: 51.1
Multi-Family Residential ABI: 51.5
Mixed Practice ABI: 42.5
South Region ABI: 47.7
West Region ABI: 49.0
Midwest Region ABI: 48.0
Northeast Region ABI: 47.2
New Project Inquiry Index (NPII): 57.7
Quick Analysis:
Index value > 50 represents that architects have reported more activity for that particular metric than the prior month. These metrics are leading indicators as the ABI reflects projects in design that will enter the construction phase in 9 to 12 months and the NPII reflects new project demand from owners to potentially enter the design phase.
The AIA's Architecture Billings Index retreated to 48.3 in April, down from 49.8 in March, as energy price pressures tied to the Iran conflict drove broader economic instability, extending the index's streak below the 50-point growth threshold to over three years. No region reported billing growth in April, with firms in the South seeing further softening after showing early-year improvement, while Western firms were the least likely to report declines for the third consecutive month. On a more encouraging note, new project inquiries rose for the third straight month with a strong score of 57.7, and the value of new design contracts remained close to returning to growth, a potentially positive signal for nonresidential construction activity 9 to 12 months out.
http://new.aia.org/press-releases
