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
October 2025 vs. October 2024
NOTE: Federal funding lapse has delayed new construction spending data releases.
All Construction Spending: -1.4%
Public Construction: +3.6%
Private Construction: -2.9%
Residential Construction: -2.4%
Non-Residential Construction: -0.7%
Quick Analysis:
Compared with October 2024, total U.S. construction spending in October 2025 declined by 1.4% year over year, reflecting a modest contraction in overall construction activity. Public construction spending rose 3.6% from a year earlier, partially offsetting weakness in private construction, which fell 2.9% year over year. Within private construction, residential spending declined 2.4% while non-residential construction was comparatively more stable, down just 0.7% versus October 2024.
Notable Increases/Decreases By Type:
- Sewage and Waste Disposal - Spending is up 15.8% versus 2024
- Water Supply - Spending is up 5.0% versus 2024
- Commercial - Spending is down 2.3% versus 2024
- Manufacturing - Spending is down 9.6% versus 2024
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
February 2026 vs. February 2025
Total Construction Costs: +2.7%
Building Cost Index: +4.0%
Material Cost Index: +4.0%
Skilled Labor Costs: +4.1%
Common Labor Costs: +2.1%
Quick Analysis:
ENR’s February data shows construction costs continuing to rise year-over-year, though overall growth moderated slightly compared to January. Total construction costs increased 2.7% in February (vs. 2.8% in January), while the Building Cost Index rose 4.0% (down from 4.2%). Material cost growth accelerated to 4.0%, up from 3.1% in January, indicating renewed material price pressure. Meanwhile, labor cost increases eased, with skilled labor rising 4.1% (down from 5.2%) and common labor up 2.1% (down from 2.7%). Overall, cost pressures remain persistent, but labor inflation appears to be cooling while material costs are picking back up.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
January 2026
Construction Unemployment: 6.9%
Quick Analysis:
Construction unemployment registered 6.9% in January 2026, consistent with the typical seasonal uptick seen each winter and broadly in line with recent January readings. The rate matches January 2024 (6.9%) and sits slightly above January 2025 (6.5%), but remains below pre-pandemic January levels such as 2016–2018, when rates frequently ranged from 7% to over 9%. Compared to the elevated volatility of 2020 and 2021, current unemployment levels reflect a far more stable labor market. Overall, January 2026 suggests seasonal softening rather than structural weakness, with construction employment conditions remaining relatively tight by historical standards.
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
January 2026
Architectural Billings Index (ABI): 43.8
New Design Contract Index (DCI): 42.7
Commercial/Industrial ABI: 43.9
Institutional ABI: 46.8
Multi-Family Residential ABI: 48.4
Mixed Practice ABI: 43.4
South Region ABI: 50.2
West Region ABI: 46.3
Midwest Region ABI: 46.3
Northeast Region ABI: 42.3
New Project Inquiry Index (NPII): 49.3
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.
The AIA's Architecture Billings Index (ABI) showed that architecture firm billings continued to contract in January 2026, with the ABI falling to 43.8 from 47.1 in December, indicating more firms reporting decreases than growth in billings. New project inquiries declined for the first time since April 2025, and newly signed design contracts softened as ongoing client uncertainty and smaller project scopes weighed on activity. Billings fell across most U.S. regions (except the South, which remained stable) while firms in the Midwest reversed a late-2025 uptick. All major practice specializations experienced soft conditions, with multifamily residential firms seeing a slower decline but no positive growth since mid-2022. AIA’s chief economist described broader economic conditions as subdued, though construction employment showed some strength with job gains early in 2026.
http://new.aia.org/press-releases
