Catalyst Construction Economics Hub
Know where the industry is.Know where it's headed.
Data Which Reflects Where the Industry Is Today
Construction Spending
U.S. Census Bureau - Construction Spending
Year-To-Date Annual Total - Seasonally Adjusted Annual Rate
July 2025 vs. July 2024
NOTE: The August data was scheduled to be released October 1, 2025 but has not been due to the federal government shutdown.
All Construction Spending: -2.8%
Public Construction: +3.4%
Private Construction: -4.6%
Residential Construction: -5.1%
Non-Residential Construction: -1.1%
Quick Analysis:
In July 2025, total U.S. construction spending fell 2.8% compared to July 2024, driven by a 4.6% decline in private construction, including a 5.1% drop in residential and 1.1% in non-residential. In contrast, public construction grew 3.4%, partially offsetting private sector weakness. The hope is that falling interest rates will spur more activity in the private sector.
Notable Increases/Decreases By Type:
- Sewage and Waste Disposal - Spending is up 10.9% versus 2024
- Water Supply - Spending is up 3.3% versus 2024
- Commercial - Spending is down 8.2% versus 2024
- New Multifamily - Spending is down 9.4% versus 2024
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
October 2025 vs. October 2024
Total Construction Costs: +3.2%
Building Cost Index: +3.6%
Material Cost Index: +1.4%
Skilled Labor Costs: +5.5%
Common Labor Costs: +4.0%
Quick Analysis:
ENR reported total construction costs as up 3.2% year-over-year in late October, which represents a full percentage point increase in costs from the 2.2% annual increase in total construction costs reported in late September. The further increase in total construction costs is being driven by increases in labor costs.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
August 2025
NOTE: The September data has not been released yet due to the federal government shutdown.
Construction Unemployment: 3.2%
Quick Analysis:
In August 2025, construction unemployment came in at 3.2%, tying the lowest reading on record. This historic low highlights an exceptionally tight labor market, signaling continued upward pressure on wages and ongoing challenges for contractors to attract and retain skilled workers.
http://data.bls.gov/timeseries/LNU04032231?data_tool=XGtable
Contractor Backlogs
ABC Backlog Indicator
September 2025 (3rd Quarter)
National Avg. Backlog: 8.5 months
Backlog By Region:
South: 9.9 months | Northeast: 7.6 months | Middle States: 8.6 months | West: 7.5 months
Backlog By Company Revenue:
<$30 Million: 7.8 months | $30-$50 Million : 7.8 months | $50-$100 Million: 8.3 months | >$100 Million: 12.5 months
Backlog By Industry:
Commercial & Institutional: 8.5 months | Heavy Industrial: 7.6 months | Infrastructure: 9.5 months
Quick Analysis:
In September 2025, the Construction Backlog Indicator (CBI) held steady at 8.5 months, down just 0.1 months compared to the previous year. Sector-wise, backlogs declined in the commercial, institutional, and heavy industrial categories but rose notably in the infrastructure segment. Smaller contractors with less than $30 million in annual revenue experienced the sharpest declines, while larger firms maintained or expanded their backlogs. Regionally, backlog strength was concentrated in areas with strong infrastructure and data center development, indicating public-sector and technology-driven projects are sustaining activity nationwide despite broader softness.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
September 2025
Architectural Billings Index (ABI): 43.3
New Design Contract Index (DCI): 46.3
Commercial/Industrial ABI: 46.6
Institutional ABI: 44.3
Multi-Family Residential ABI: 47.2
Mixed Practice ABI: 44.0
South Region ABI: 47.9
West Region ABI: 40.6
Midwest Region ABI: 49.8
Northeast Region ABI: 43.8
New Project Inquiry Index (NPII): 50.1
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.
In September 2025, the American Institute of Architects Architecture Billings Index (ABI) dropped to 43.3, the lowest level since April and well below the 50-point threshold that signals growth. Billings fell in every U.S. region except the Midwest, with the West facing the most severe decline, while the institutional sector reported the weakest performance overall. New project inquiries hovered near flat at 50.1, but design contract values collapsed again to 46.3, highlighting a drop in upcoming work pipelines.
http://new.aia.org/press-releases
