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
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
September 2025 vs. September 2024
Total Construction Costs: +2.2%
Building Cost Index: +2.5%
Material Cost Index: +0.0%
Skilled Labor Costs: +4.7%
Common Labor Costs: +3.1%
Quick Analysis:
ENR reported total construction costs up 2.2% year-over-year, with building costs rising 2.5%, skilled labor +4.7%, and common labor +3.1%, while material costs held flat. With construction unemployment at just 3.2%, labor costs can be expected to keep climbing as tight labor supply continues to pressure wages.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
August 2025
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
June 2025 (2nd Quarter)
National Avg. Backlog: 8.7 months
Backlog By Region:
South: 9.4 months | Northeast: 9.2 months | Middle States: 7.3 months | West: 8.0 months
Backlog By Company Revenue:
<$30 Million: 8.0 months | $30-$50 Million : 8.8 months | $50-$100 Million: 9.2 months | >$100 Million: 11.9 months
Backlog By Industry:
Commercial & Institutional: 8.9 months | Heavy Industrial: 6.8 months | Infrastructure: 9.3 months
Quick Analysis:
The Associated Builders and Contractors' (ABC) latest survey indicates that contractor backlogs are largely remaining steady. This data is in part being driven by strong activity in the data center construction space - as evidenced by almost 15% of ABC members reporting that they are currently working on a data center project. Contractors by and large remain generally optimistic in light of the economic headwinds that are applying pressure to national construction spending levels versus the prior year.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
August 2025
Architectural Billings Index (ABI): 47.5
New Design Contract Index (DCI): 47.2
Commercial/Industrial ABI: 50.8
Institutional ABI: 44.5
Multi-Family Residential ABI: 49.9
Mixed Practice ABI: 43.3
South Region ABI: 49.9
West Region ABI: 43.5
Midwest Region ABI: 48.0
Northeast Region ABI: 46.2
New Project Inquiry Index (NPII): 50.3
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.
In August 2025, the Architectural Billings Index (ABI) registered 47.5, marking the 18th straight month of contraction, the longest decline in 15 years. While overall demand for design services remains weak, project inquiries have risen for four months, and billings in multifamily and commercial/industrial sectors are showing early signs of stabilization.
http://new.aia.org/press-releases
