IMA – Markets in Focus - Economic Overview & Market Update - Construction, 4Q 2025

The main topic of the report is the analysis of the current state and forecasts for the construction industry.

Key findings include: a general decline in construction spending by 2.8% year-on-year, with weakness in the residential sector (-5.1%) and resilience in the non-residential sector due to data center projects and infrastructure growth in the southern US. Government construction spending has increased by 43.6% over three years, despite the recent government shutdown. Rising material costs, particularly for copper and natural gas, are putting pressure on budgets, although falling crude oil prices provide some relief. Tight labor market conditions, with a 0.8% decline in residential employment and a 3.7% increase in wages. Stable order backlogs (+0.3% year-on-year) and a decline in project stress indicators, but the architectural billings index remains below 50, indicating potential future slowdown. Despite challenges such as inflation, labor shortages, and economic uncertainty, strong government spending and major projects in the non-residential sector create a foundation for cautious optimism.