Construction Dive’s December 2025 economic roundup
Summary
The December 2025 economic roundup highlights a rebound in construction activity as delayed data post-government shutdown reveals growth in planning and project pipelines, though benefits are unevenly distributed among contractors.
Why It Matters
This article provides crucial insights into the current state of the construction industry, particularly following the disruptions caused by the late-2025 government shutdown. Understanding these trends is vital for stakeholders, including contractors and policymakers, to navigate the evolving economic landscape and address challenges such as rising material costs and disparities between large and small contractors.
Key Takeaways
- Construction planning activity increased by 7% in December 2025.
- Large contractors are seeing significant backlog gains, while smaller firms are struggling.
- Project stress levels among contractors have decreased, indicating improved conditions.
- Rising material prices and trade policies remain concerns for 2026.
- The Dodge Momentum Index finished 2025 37% higher than in 2024.
An article from Construction Dive’s December 2025 economic roundup The waters for construction’s future are clearer as data delayed by the late-2025 government shutdown begins to trickle in. Published Feb. 3, 2026 Sebastian Obando Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print Add us on Google Construction workers labor on a new building on Sept. 5, 2025, in San Francisco, Calif. Justin Sullivan/Getty Images via Getty Images The health of construction is once again coming back into view as long-delayed data begins to trickle in following the late-2025 government shutdown. Construction planning activity jumped in December, mirroring the year’s theme of data center and infrastructure work growth. Contractors reported strong pipelines heading into 2026, and projects appear to be moving through planning phases faster than earlier in 2025. That’s a positive sign for sustained momentum this year. But builders say the strength is narrowly concentrated. Backlog gains, for example, increasingly favor large contractors with over $100 million in revenue. A closer look at those numbers show shrinking backlogs for smaller contractors across the country. Still, it will take more negative news to knock the optimism. Project stress among contractors eased sharply in December to end a year marked by tariffs and a government shutdown. Those pressures, however, have reopened some concerns in the industry around rising materials prices in 2026. The majority of economists exp...
