Latest construction data shows weakening market to start 2026

An article from Latest construction data shows narrowing market to start 2026 Several indicators softened during the first two months of the year, but not all activity has stalled. Published April 6, 2026 Sebastian Obando Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print Add us on Google An aerial view of workers during construction of a new building on March 6, 2026, in Pasadena, Calif. Mario Tama/Getty Images via Getty Images A handful of sectors did most of construction’s heavy lifting to start 2026. The latest data through February shows several key indicators softening. Nonresidential planning declined for the second straight month. Meanwhile, hiring slowed to the lowest rate on record. Together, the data suggests contractors are growing more cautious about big expansions to pipelines and workforces. Headwinds have also remained persistent. Construction input prices, for example, surged at a staggering pace to begin the year, largely driven by rising energy prices and geopolitical tensions. Economists noted those issues could worsen due to the Iran war — the impacts of which have not yet shown up in many data sets — and will likely weigh on activity in the coming months. Some project owners have already begun delaying work as a result. But activity as a whole hasn’t stalled, reports show. Contractor backlog ticked up slightly in February, and construction starts showed signs of life as well, particularly in commercial construction. Nevertheless, much of...