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
January 2026 vs. January 2025
** NOTE: This is the same data from the prior month. New spending data has not yet been released this month as of the time of our monthly data update (April 29th, 2026). **
All Construction Spending: +1.0%
Public Construction: +4.5%
Private Construction: -0.1%
Residential Construction: +2.3%
Non-Residential Construction: -0.1%
Quick Analysis:
U.S. construction spending is essentially flat year-over-year, with total growth of just 1.0%, indicating a stable but slow-moving market. Public construction is the primary driver of growth (+4.5%), offsetting slight declines in private and non-residential activity. Residential construction shows modest strength (+2.3%), while private and non-residential segments remain stagnant.
Notable Increases/Decreases By Type:
- Sewage and Waste Disposal - Spending is up 9.8% versus 2025
- Water Supply - Spending is up 8.5% versus 2025
- Manufacturing - Spending is down 15.0% versus 2025
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
April 2026 vs. April 2025
Total Construction Costs: +2.6%
Building Cost Index: +4.0%
Material Cost Index: +5.9%
Skilled Labor Costs: +2.5%
Common Labor Costs: +1.3%
Quick Analysis:
ENR's April 2026 Construction Economics report shows annual cost inflation remains elevated, with the Building Cost Index up 4.0%, the Construction Cost Index up 2.6%, and materials costs up 5.9% year-over-year, though all three held flat month-over-month. Steel prices continue to reflect tariff pressures, with reinforcing bars up 14.1%, hot-rolled carbon-steel plate up 27.7%, and aluminum sheet up 24.8% annually.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
March 2026
Construction Unemployment: 6.9%
Quick Analysis:
The construction unemployment rate for March 2026 was 6.7%, down from 6.9% in February and 7.1% in January, continuing a seasonal improvement trend typical of the spring building season. Compared to March 2025's rate of 5.4%, however, the current figure remains elevated by 1.3 percentage points, reflecting the broader softening in construction labor demand seen throughout the past year.
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
March 2026
Architectural Billings Index (ABI): 49.8
New Design Contract Index (DCI): 47.8
Commercial/Industrial ABI: 52.5
Institutional ABI: 52.6
Multi-Family Residential ABI: 50.9
Mixed Practice ABI: 40.7
South Region ABI: 48.5
West Region ABI: 50.6
Midwest Region ABI: 49.4
Northeast Region ABI: 44.2
New Project Inquiry Index (NPII): 56.8
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/Deltek Architecture Billings Index rose to 49.8 in March, its closest reading to the 50-point growth threshold since early 2023, with new project inquiries climbing to 56.8 and firm backlogs averaging 6.6 months, the highest since December 2023. Regionally, the West crossed into expansion territory at 50.6 while the Northeast continued to lag at 44.2, and institutional and commercial/industrial sectors both posted readings above 50. However, the value of newly signed design contracts declined for the 25th consecutive month, with the pace of decline accelerating from February, a cautionary signal given that the ABI typically leads nonresidential construction activity by 9 to 12 months.
http://new.aia.org/press-releases
