Federal data darkened in October as the government shutdown extended into its second month.
The lack of government data has left builders without the usual readings on construction spending, producer prices and total jobs. With these paused reportsconstruction companies face a data gap on material costs and the pace of construction investments, along with a limited understanding of global labor availability.
But contractors, despite the absence of these reports, still believe that activity is recovering.
The Federal Reserve cut its benchmark rate again on October 29 by another 25 basis points. The movement offered some relief for developers who have spent much of the year waiting on the sidelines, according to contractors.
Data centers and healthcare projects anchored much of the industry’s momentum, according to the latest available reports. The Dodge Momentum Index, which tracks nonresidential projects entering planning, rose 3.4% for the month and now sits 33% above its 2024 level. Data center and healthcare construction planning activity “remained firm” and could translate into “stronger construction spending in early 2027,” said Sarah Martin, associate director of forecasting at the Dodge Construction Network.
That pipeline strength also showed in contractor portfolios, which were flat at 8.5 months in September, according to a survey of builders and contractors associated. Infrastructure construction remains the key driver, with data center projects also drive work.
For example, about one in five contractors reported active data center work during the survey period, and those companies averaged about 12 months behind schedule compared to eight months among contractors without such projects.
Project stress indicators also provided an encouraging sign.
ConstructConnect’s Project Stress Index, which tracks delayed and abandoned work, fell 0.6% from August to September. This puts overall stress just 4% above its 2021 baseline and 0.5% higher than the same period last year.
The number of works has also improved, according to the latest report. Total starts rose 3.1 percent, and nonresidential construction rose 11.9 percent in September, according to Dodge.
But public employment could weaken further if the shutdown drags on, said Devin Bell, associate economist at ConstructConnect.
Federal funding stops they have already disrupted some projects, he said, compounding the effects high costs and tight labor. About one in four contractors report delayed or canceled work related to rates, and nearly half cite labor shortages as their biggest challenge.
Another positive appeared last week. The Federal Reserve cut its benchmark rate again on October 29 by another 25 basis points. The movement offered some relief for developers who have spent much of the year waiting on the sidelines, according to contractors.
Here, Construction Dive collects the latest economic data for builders:
