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
May 2025 vs. May 2024
All Construction Spending: -3.5%
Public Construction: +3.3%
Private Construction: -5.4%
Residential Construction: -6.5%
Non-Residential Construction: -1.1%
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, spending remains under pressure from high interest rates.
Notable Increases/Decreases By Type:
- Sewage and Waste Disposal - Spending is up 9.2% versus 2024
- Water Supply - Spending is up 6.1% versus 2024
- Commercial - Spending is down 10.3% versus 2024
- New Multifamily - Spending is down 10.9% versus 2024
https://www.census.gov/construction/c30/c30index.html
Construction Costs
ENR Construction Cost Index
July 2025 vs. July 2024
Total Construction Costs: +2.5%
Building Cost Index: +3.0%
Material Cost Index: +0.8%
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 few months to reflect a slight increase as compared to last year.
http://enr.construction.com/economics/
Construction Employment
U.S. Bureau of Labor Statistics
June 2025
Construction Unemployment: 3.4%
Quick Analysis:
In June 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 3.4% is essentially on par with the unemployment rate reported for the industry in the month of June in each of the prior three years.
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
June 2025
Architectural Billings Index (ABI): 46.8
New Design Contract Index (DCI): 46.0
Commercial/Industrial ABI: 47.4
Institutional ABI: 49.2
Multi-Family Residential ABI: 43.8
Mixed Practice ABI: 45.5
South Region ABI: 50.6
West Region ABI: 45.8
Midwest Region ABI: 45.7
Northeast Region ABI: 46.5
New Project Inquiry Index (NPII): 53.6
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 June 2025, the national Architectural Billings Index (ABI) remained below the 50 threshold at 46.8, indicating a continued decline in design activity. However, the South was a bright spot, posting an ABI of 50.6 - suggesting steady demand in that region. While design activity was soft overall, the New Project Inquiry Index rose to 53.6, pointing to potential future growth as owner interest in new projects begins to rebound. For contractors, this mixed picture suggests caution nationally but encouraging momentum in the South.
http://new.aia.org/press-releases
