Early economic signs suggest that construction has started in 2026 with less momentum.
The latest data available through early March showed rapid growth in megaprojects in 2025, followed by softening in several key construction indicators to start 2026. For example, contractor backlogs fell to a four-year low in January, the latest month for which data have been reported, and planning activity fell.
Innovations in much of the construction sector also did not improve to start the year. While the total number of starts increased, a handful of energy and utility projects supported this growth. A closer look at initial activity showed a slowdown in commercial and institutional work.
But despite the gathering clouds, contractor sentiment remains strong.
This could be due to the fact that the main drivers of construction are still showing a growth story, with more runway ahead. Data center construction continues to dominate the construction portfolio. Energy and infrastructure work also favors non-residential construction activity.
And from a broader perspective, some indicators suggest that conditions are healthier today than they were a year ago. Project stress rose slightly in January due to more delays, for example, but the index is well below year-ago levels due to a sharp improvement in construction abandonments.
Of course, all these positives could change as construction faces continued tariff pressures. Input prices rose again in January, with many key materials such as copper, wire, iron and steel becoming more expensive. Economists who watch trade policy warn that those increases could persist this year.
Here, Construction Dive collects the latest economic data for builders.
