Navigating A Complex and Uncertain Economic Landscape

As 2025 wraps up, the latest Construction Economic Report offers a snapshot of where U.S. construction industry stands and what to watch when planning your next move. From sluggish consumer-demand signals to pockets of industrial and infrastructure strength, there’s no “one-size-fits-all” story. Smart contractors will treat 2026 as a year to stay alert and flexible.

The Q3 2025 Construction Economic Report delivers a comprehensive overview of the economic landscape. Highlights include:
  • Uneven Sector Momentum: Residential construction remains soft, while nonresidential sectors, especially manufacturing, power and data centers, are holding up and poised for growth.
  • Material Costs Still Elevated: The Construction Materials Producer Price Index rose 5.2% year-over-year. Copper and aluminum remain cost drivers amid global supply-chain stress and tariffs.
  • Credit Remains Available, But Caution is Warranted: Lending has loosened slightly, yet business-loan credit quality shows weakness. For firms seeking refinancing or new debt, underwriting standards are tightening.
  • Nonresidential Spending Is Significant, But Not Immune to Pressure: Though year-over-year spending eased about 1.1%, total nonresidential investment holds at unprecedented levels. Continued strength in industrial, power and data-center development suggests potential upside ahead.

Download the full report to learn more.