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
April 2025 vs. April 2024
All Construction Spending: -0.5%
Public Construction: +5.5%
Private Construction: -2.2%
Residential Construction: -4.7%
Non-Residential Construction: +2.8%
Quick Analysis:
While total construction spending edged down slightly, the year-over-year data shows a clear divide between public and private sectors. Public construction continues to register at higher levels than a year ago. On the private side, residential spending remains under pressure from high interest rates.
Notable Increases/Decreases By Type:
- Sewage and Waste Disposal - Spending is up 8.9% versus 2024
- Water Supply - Spending is up 6.9% versus 2024
- Manufacturing - Spending is up 0.3% versus 2024
- Commercial - Spending is down 3.6% versus 2024
- New Multifamily - Spending is down 11.3% versus 2024
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
June 2025 vs. June 2024
Total Construction Costs: +2.4%
Building Cost Index: +2.9%
Material Cost Index: +0.7%
Skilled Labor Costs: +4.8%
Common Labor Costs: +3.1%
Quick Analysis:
Construction input cost fluctuations in both major buckets - materials and labor - have remained fairly stable recently. ENR's Material Cost Index has shifted over the last two months to reflect a slight increase as compared to last year.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
May 2025
Construction Unemployment: 3.5%
Quick Analysis:
In May 2025, the U.S. construction industry experienced the usual drop in the unemployment rate as work picked up in colder climates. The reported industry unemployment rate of 3.5% is essentially on par with the unemployment rate reported for the industry in the month of May in each of the prior three years.
http://data.bls.gov/timeseries/LNU04032231?data_tool=XGtable
Contractor Backlogs
ABC Backlog Indicator
March 2025 (1st Quarter)
National Avg. Backlog: 8.5 months
Backlog By Region:
South: 10.3 months | Northeast: 8.0 months | Middle States: 7.4 months | West: 7.4 months
Backlog By Company Revenue:
<$30 Million: 7.4 months | $30-$50 Million : 9.6 months | $50-$100 Million: 9.0 months | >$100 Million: 12.9 months
Backlog By Industry:
Commercial & Institutional: 8.7 months | Heavy Industrial: 7.4 months | Infrastructure: 9.5 months
Quick Analysis:
The Associated Builders and Contractors' latest survey indicates that recent tariffs are significantly impacting the U.S. construction industry. Approximately 80% of contractors reported supplier notifications of tariff-induced material price increases, and nearly 20% experienced project delays or interruptions due to these tariffs. While the Construction Backlog Indicator rose to 8.5 months in March, contractor confidence has declined, with fewer than 26% expecting profit margin growth over the next six months and over 40% anticipating contractions, especially among those surveyed after the April 2 tariff announcement.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
May 2025
Architectural Billings Index (ABI): 47.2
New Design Contract Index (DCI): 45.9
Commercial/Industrial ABI: 43.8
Institutional ABI: 46.2
Multi-Family Residential ABI: 46.1
Mixed Practice ABI: 45.4
South Region ABI: 49.2
West Region ABI: 44.3
Midwest Region ABI: 43.5
Northeast Region ABI: 43.6
New Project Inquiry Index (NPII): 51.4
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.
Architecture billings remained in decline in May, with the AIA’s Architecture Billings Index (ABI) posting a score of 47.2, below the growth threshold of 50 but showing slower contraction than prior months. Encouragingly, the New Project Inquiries Index rose to 51.4, signaling renewed interest and potential stabilization in future project pipelines. While overall design activity is still soft, the uptick in inquiries offers a cautiously optimistic signal for construction starts in the second half of 2025.
http://new.aia.org/press-releases
