A handful of sectors did most of the heavy lifting of construction to begin in 2026.
The latest data through February show that several key indicators have softened. Non-residential planning declined for the second consecutive month. Meanwhile, hiring slowed to the lowest pace on record. Overall, the data suggests that contractors are becoming more cautious about major pipeline and labor expansions.
Headwinds have also remained persistent.
Construction input prices, for example, rose at a surprising pace to start the year, largely driven by rising energy prices and geopolitical tensions. Economists noted that these issues could worsen due to the Iran war, the impacts of which have not yet shown up in many data sets, and are likely to weigh on activity in the coming months. As a result, some project owners have already started delaying work.
But activity as a whole has not stopped, reports show.
The contractor backlog increased slightly in February and construction starts also showed signs of life, particularly in commercial construction. However, much of this force remains concentrated among large construction companies and data center projects. This is masking weakness in more traditional construction sectors such as warehouse and health work.
Here, Construction Dive collects the latest economic data for builders.
