What We Learned in April: Construction Industry Indicators Volatile
The construction industry added a healthy number of jobs in March, but spending remains stagnant and materials price escalation has reemerged in a major way. Critically, most of the recently released data does not reflect the effects of the conflict in Iran and resulting rise in oil prices.
Materials Prices Rise Rapidly
Construction materials prices surged for the second straight month in March and are now up 4.8% year over year. That’s the largest annual increase since January 2023. While much of the monthly rise was due to higher energy prices, tariff-impacted materials like iron and steel continue to see rapid price escalation.
Construction Employment Rebounds
Construction employment increased by 26,000 jobs in March, and the industry has added an average of 19,300 jobs per month through the first quarter of 2026. That’s a significant improvement from 2025, when the industry actually lost jobs.
Backlog Steadies, Contractor Confidence Improves
ABC’s Construction Backlog Indicator rebounded to 8.6 months in March and is now well above January’s four-year low. The 15% of contractors under contract to work on data centers continue to have significantly longer backlog (10.6 months) than the 85% of contractors who are not (8.3 months).
Contractor confidence also improved in March with sales, profit margins and staffing expectations all higher than one year ago.
Construction Spending
Private nonresidential construction spending fell for the fourth consecutive month in January, and there were few sources of momentum outside of the ascendant data center segment. While harsh winter weather likely suppressed construction activity in January, it remains to be seen how the precipitous rise in oil prices that occurred in March will affect construction spending in the months ahead.
Looking Ahead
On April 17, the Strait of Hormuz was allegedly “reopened.” It remains to be seen if that “reopening” will hold, and even if it does, there have been hundreds of millions of barrels of lost oil production over the past two months. Gas and diesel prices will be meaningfully higher than they otherwise would have been as a result, and that will put upward pressure on construction costs for the foreseeable future.
| April 2026 Economic Overview | Values | Change from | |||
| Construction Backlog Indicator (Months)* | Mar-26 | Feb-26 | Mar-25 | Feb-26 | Mar-25 |
| Nationwide | 8.6 | 8.1 | 8.5 | 0.5 | 0.1 |
| Middle states | 7.8 | 8.1 | 7.4 | -0.3 | 0.4 |
| Northeast | 8.3 | 7.7 | 8.0 | 0.6 | 0.3 |
| South | 9.4 | 9.7 | 10.3 | -0.3 | -0.9 |
| West | 8.2 | 6.6 | 7.4 | 1.6 | 0.8 |
| Construction Confidence Index** | Mar-26 | Feb-26 | Mar-25 | Feb-26 | Mar-25 |
| Sales | 64.7 | 65.8 | 62.6 | -1.1 | 2.1 |
| Profit margins | 53.6 | 52.9 | 52.7 | 0.7 | 0.9 |
| Staffing | 64.3 | 63.0 | 64.2 | 1.3 | 0.1 |
| Spending ($Millions) | Jan-26 | Dec-25 | Jan-25 | Dec-25 | Jan-25 |
| Total construction | $2,190,424 | $2,197,580 | $2,169,595 | -0.3% | 1.0% |
| Residential | $945,151 | $952,369 | $923,551 | -0.8% | 2.3% |
| Nonresidential | $1,245,274 | $1,245,212 | $1,246,043 | 0.0% | -0.1% |
| Amusement and recreation | $44,452 | $44,690 | $40,541 | -0.5% | 9.6% |
| Commercial | $122,247 | $122,602 | $122,697 | -0.3% | -0.4% |
| Communication | $29,657 | $29,626 | $29,284 | 0.1% | 1.3% |
| Conservation and development | $12,790 | $12,378 | $11,304 | 3.3% | 13.1% |
| Educational | $140,117 | $140,644 | $138,196 | -0.4% | 1.4% |
| Health care | $68,981 | $68,618 | $69,226 | 0.5% | -0.4% |
| Highway and street | $149,538 | $144,795 | $143,722 | 3.3% | 4.0% |
| Lodging | $24,909 | $24,846 | $23,888 | 0.3% | 4.3% |
| Manufacturing | $196,166 | $200,262 | $230,876 | -2.0% | -15.0% |
| Office | $109,245 | $108,519 | $105,604 | 0.7% | 3.4% |
| Power | $162,385 | $162,665 | $157,284 | -0.2% | 3.2% |
| Public safety | $19,244 | $19,678 | $19,252 | -2.2% | 0.0% |
| Religious | $5,131 | $5,186 | $4,739 | -1.1% | 8.3% |
| Sewage and waste disposal | $54,336 | $54,475 | $49,470 | -0.3% | 9.8% |
| Transportation | $69,603 | $69,620 | $66,338 | 0.0% | 4.9% |
| Water supply | $36,471 | $36,607 | $33,624 | -0.4% | 8.5% |
| Private nonresidential | $728,241 | $731,418 | $751,095 | -0.4% | -3.0% |
| Public nonresidential | $517,033 | $513,794 | $494,949 | 0.6% | 4.5% |
| Employment (Thousands) | Mar-26 | Feb-26 | Mar-25 | Feb-26 | Mar-25 |
| All industries | 158,637 | 158,459 | 158,377 | 0.1% | 0.2% |
| Construction | 8,330 | 8,304 | 8,273 | 0.3% | 0.7% |
| Residential building | 932 | 929 | 936 | 0.3% | -0.4% |
| Nonresidential building | 942 | 937 | 925 | 0.5% | 1.9% |
| Heavy and civil engineering construction | 1,205 | 1,201 | 1,180 | 0.3% | 2.1% |
| Residential specialty trade contractors | 2,369 | 2,358 | 2,394 | 0.5% | -1.1% |
| Nonresidential specialty trade contractors | 2,883 | 2,879 | 2,838 | 0.1% | 1.6% |
| Construction unemployment rate | 6.7% | 6.9% | 5.4% | -0.2pp | 1.3pp |
| Average hourly construction earnings | 40.9 | 40.7 | 39.2 | 0.5% | 4.3% |
| Average weekly construction hours | 39.2 | 39.5 | 39.3 | -0.8% | -0.3% |
| Job Openings and Labor Turnover Survey (Construction) | Feb-26 | Jan-26 | Feb-25 | Jan-26 | Feb-25 |
| Job openings | 202,000 | 230,000 | 255,000 | -28,000 | -53,000 |
| Hires | 274,000 | 362,000 | 348,000 | -88,000 | -74,000 |
| Total separations | 281,000 | 315,000 | 338,000 | -34,000 | -57,000 |
| Layoffs and discharges | 152,000 | 162,000 | 148,000 | -10,000 | 4,000 |
| Quits | 122,000 | 129,000 | 173,000 | -7,000 | -51,000 |
| Other separations | 7,000 | 24,000 | 18,000 | -17,000 | -11,000 |
| Producer Price Index: Inputs to | Mar-26 | Feb-26 | Mar-25 | Feb-26 | Mar-25 |
| Construction | 341.0 | 333.5 | 325.3 | 2.2% | 4.8% |
| Multifamily | 162.0 | 159.2 | 155.1 | 1.7% | 4.4% |
| Nonresidential | 172.6 | 168.7 | 163.8 | 2.3% | 5.4% |
| Commercial | 163.2 | 160.5 | 154.5 | 1.7% | 5.6% |
| Healthcare | 162.6 | 159.9 | 154.3 | 1.7% | 5.4% |
| Industrial | 170.5 | 167.3 | 161.1 | 2.0% | 5.9% |
| Other nonresidential | 171.0 | 166.9 | 162.2 | 2.5% | 5.5% |
| Maintenance and repair | 346.9 | 339.2 | 331.8 | 2.3% | 4.6% |
Sources: U.S. Bureau of Economic Analysis; U.S. Census Bureau; U.S. Bureau of Labor Statistics, Associated Builders and Contractors.
*The Construction Backlog Indicator measures the average months of work under contract for ABC members.
**The Construction Confidence Index is a diffusion index where values above 50 indicate expectations of expansion over the next six months, while values under 50 indicate expectations of contraction.
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