Construction spending in the U.S. is expected to increase 1% in 2026 compared with 2025, according to the 2026 North American Engineering and Construction Industry Overview released by FMI Corporation.
The forecast reflects uneven growth across construction sectors, with public and infrastructure projects providing stability while several private segments remain under pressure.
FMI President and CEO Chris Daum said construction companies will need to carefully evaluate where to compete as market conditions vary by sector.
The report also notes that total U.S. construction put in place is expected to end 2025 down 1% compared with 2024.
Among construction categories, nonbuilding structures are projected to lead growth, increasing 4% as power, water and environmental projects move forward with previously committed funding.
Data center construction continues to be a major driver in nonresidential building, with activity increasing 35% compared with 2024 levels.
In 2025, some of the strongest-performing segments included sewage and waste disposal, water supply, conservation and development, and religious structures, the latter driven in part by adaptive reuse projects.
