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
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
March 2026 vs. March 2025
Total Construction Costs: +2.7%
Building Cost Index: +4.3%
Material Cost Index: +5.8%
Skilled Labor Costs: +3.1%
Common Labor Costs: +1.5%
Quick Analysis:
Construction costs continue to rise at a moderate pace, with total costs up 2.7% year-over-year. Material prices (+5.8%) and building costs (+4.3%) are the primary drivers of inflation. Labor cost increases are more contained, with skilled labor up 3.1% and common labor up 1.5%.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
February 2026
Construction Unemployment: 6.9%
Quick Analysis:
Construction unemployment in February 2026 reflects a relatively stable but slightly softening labor market. The broader U.S. unemployment rate ticked up to 4.4%, indicating mild cooling in overall labor conditions that likely carries into construction.
At a macro level, this suggests construction labor remains relatively tight but is no longer tightening further, with conditions leveling off rather than improving. Overall, the February reading points to a balanced labor market - neither a major constraint nor a significant tailwind for construction activity.
http://data.bls.gov/timeseries/LNU04032231?data_tool=XGtable
Contractor Backlogs
ABC Backlog Indicator
December 2025 (4rd Quarter)
National Avg. Backlog: 8.2 months
Backlog By Region:
South: 9.8 months | Northeast: 7.5 months | Middle States: 7.5 months | West: 7.2 months
Backlog By Company Revenue:
<$30 Million: 6.7 months | $30-$50 Million : 7.7 months | $50-$100 Million: 10.3 months | >$100 Million: 14.2 months
Backlog By Industry:
Commercial & Institutional: 8.4 months | Heavy Industrial: 6.7 months | Infrastructure: 9.1 months
Quick Analysis:
In December 2025, ABC’s Construction Backlog Indicator showed contractors carrying an average of 8.2 months of backlog nationwide, signaling generally solid forward-looking demand entering 2026. Regional results were led by the South at 9.8 months, while the Northeast and Middle States each reported 7.5 months and the West trailed slightly at 7.2 months. Backlogs were highest among larger firms and infrastructure-focused contractors, with companies over $100 million in revenue reporting 14.2 months of backlog and infrastructure work averaging 9.1 months, compared to shorter backlogs in heavy industrial and smaller contractor segments.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
February 2026
Architectural Billings Index (ABI): 49.4
New Design Contract Index (DCI): 48.0
Commercial/Industrial ABI: 45.7
Institutional ABI: 49.2
Multi-Family Residential ABI: 48.2
Mixed Practice ABI: 41.8
South Region ABI: 50.0
West Region ABI: 47.2
Midwest Region ABI: 46.3
Northeast Region ABI: 41.9
New Project Inquiry Index (NPII): 52.3
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 rebounded in February (ABI 49.4) but remained below the growth threshold, signaling that demand is still slightly contracting overall. Leading indicators improved, with project inquiries increasing and the decline in new design contracts slowing, suggesting conditions are beginning to stabilize. At a macro level, this points to a potential bottoming phase in the design pipeline - improving momentum, but not yet indicating a return to expansion in construction activity.
http://new.aia.org/press-releases
