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
July 2026 vs. July 2025
(updated at the end of each month)
All Construction Spending: -3.8%
Public Construction: +1.7%
Private Construction: -5.5%
Residential Construction: -7.3%
Non-Residential Construction: -1.3%
Quick Analysis:
On a year-over-year, annualized basis, total construction spending in July 2026 was $2.16 trillion, down 3.8% from July 2025's $2.24 trillion. Private construction fell more sharply, down 5.5% year-over-year to $1.61 trillion, driven by a 7.3% decline in residential spending ($859.0 billion vs. $927.1 billion), with new single-family down 6.5% and new multifamily roughly flat (-0.9%). Private nonresidential spending was down a milder 3.3% year-over-year, as steep declines in manufacturing (-21.7%) were partly offset by strong growth in office (+21.3%, largely data center-driven) and power (+6.5%). Public construction was the lone bright spot, up 1.7% year-over-year to $543.4 billion, with highway and street spending up 4.5%, though educational spending was essentially flat (+0.4%).
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
September 2026 vs. September 2025
(updated at the end of each month)
Total Construction Costs: +3.7%
Building Cost Index: +5.6%
Material Cost Index: +10.9%
Skilled Labor Costs: +1.2%
Common Labor Costs: +0.9%
Quick Analysis:
ENR's September 28, 2026 report shows national construction cost pressures accelerating further. The Construction Cost Index rose 3.7% year-over-year (up 0.7% for the month), the Building Cost Index climbed 5.6% annually (up 1.0% monthly), and the Materials Cost Index jumped 10.9% year-over-year, gaining 2.2% in September alone, its sharpest monthly rise this cycle. Steel led the increase, up 21.1% year-over-year to $144.24/cwt, with wide-flange shapes now up 23.7% annually, while lumber climbed 16.3% year-over-year and cement remained relatively muted at +1.6% annually despite a 2.6% monthly jump. Platts spot data showed continued acceleration too, with hot-rolled coil up 43.6% year-over-year and plate up 27.9%, both notably higher than the prior month's readings.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
August 2026
(updated at the end of each month)
Construction Unemployment: 3.1%
Quick Analysis:
The construction industry's unadjusted unemployment rate stood at 3.7% in July 2026, essentially in line with the same month The construction industry's unadjusted unemployment rate fell to 3.1% in August 2026, down from 3.7% in July and now the lowest reading of the year, coming in below August levels in most recent years (3.9% in 2024, 3.2% in 2025) though similar to August 2022's 3.9%. The rate has followed a clear improving trend since its winter peak of 7.1% in January, dropping steadily through the spring and summer months, with only a brief uptick to 4.7% in June before resuming its decline. This continued tightening, now well below the 2018-2019 pre-pandemic range of 3.4%-4.4% for the same months, reinforces that labor availability remains a persistent constraint for contractors even as broader spending and billings data point to a softening market.
http://data.bls.gov/timeseries/LNU04032231?data_tool=XGtable
Contractor Backlogs
ABC Backlog Indicator
June 2026 (2nd Quarter)
(updated quarterly)
National Avg. Backlog: 8.8 months
Backlog By Region:
South: 10.3 months Northeast: 8.0 months Middle States: 8.5 months West: 7.6 months
Backlog By Company Revenue:
<$30 Million: 7.7 months $30-$50 Million : 8.4 months $50-$100 Million: 10.2 months >$100 Million: 12.3 months
Backlog By Industry:
Commercial & Institutional: 8.9 months | Heavy Industrial: 9.7 months | Infrastructure: 10.1 months
Quick Analysis:
ABC's Construction Backlog Indicator stood at 8.8 months in June, up 0.1 months from June 2025, with backlog now higher than any point since September 2023. That resilience is concentrated at the top of the market: the 13% of contractors with data center work under contract carry an 11.0-month backlog versus 8.5 months for the other 87%, and just 8% of contractors under $100 million in revenue have data center work compared with 41% of those above $100 million. Contractor confidence remains solid year over year, with sales and staffing outlook readings up and all three Construction Confidence Index components still above the growth threshold of 50, though profit margin confidence has slipped to a seven-month low on rising input costs.
http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/
Data Which Reflects Where the Industry Is Headed
Architectural Billings
AIA Architectural Billings Index
August 2026
(updated at the end of each month)
Architectural Billings Index (ABI): 47.2
New Design Contract Index (DCI): 48.3
Commercial/Industrial ABI: 50.4
Institutional ABI: 47.0
Multi-Family Residential ABI: 47.8
Mixed Practice ABI: 42.5
South Region ABI: 46.1
West Region ABI: 49.8
Midwest Region ABI: 50.7
Northeast Region ABI: 40.7
New Project Inquiry Index (NPII): 50.8
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 ticked up slightly to 47.2 in August from July's 46.6, though it remains firmly in contraction, marking 46 of the last 47 months below the 50 threshold and the longest slump in the index's history at nearly four years. Regional performance was mixed, with the Midwest posting its first growth in nearly a year (50.7) and the West essentially flat (49.8), while the South (46.1) and especially the Northeast (40.7, its lowest since 2020) remained weak. Commercial/industrial firms were the only sector segment in growth territory (50.4), with multifamily (47.8), institutional (47.0), and mixed-practice firms (42.5) all still contracting, and forward sentiment worsened, with the share of firms expecting declining billings rising from 21% at the end of Q1 to 29% by the end of Q3. AIA's chief economist noted firms remain squeezed between persistent inflation and higher borrowing costs, adding that the Fed's recent rate hike may ease inflation over time but adds a near-term financing headwind for projects already struggling to pencil out.
http://new.aia.org/press-releases
