The Construction Industry at a Glance: Momentum Gained in August

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construction industry at a glance for august

The US construction industry saw slight employment and spending drops in recent months, but a forward-looking industry indicator shows considerable positive momentum for both commercial and institutional sectors, according to the latest available data.

In August, preliminary numbers showed a negligible month-over-month (MoM) decline in construction employment, from 8.3 million to 8.29 million, while the sector’s unemployment rate dropped .2 percentage points to 3.2%. Construction spending followed a similar trajectory in June (the latest month for which data is available), falling 0.36% MoM (and 1.5% year-over-year) to $2.13 billion.

spending, employment, and outlook information for the construction industry in August

However, despite employment and spending slipping slightly, the industry’s overall project pipeline provides cause for optimism.

“Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research & development labs, hospitals and service stations,” said Sarah Martin, associate director of forecasting at Dodge Construction Network, in a statement accompanying the release of the company’s July Momentum Index (DMI)—a forward-looking indicator for the construction industry, based on the value of projects entering the planning stage.

From June to July 2025, DMI for commercial construction rose 14% from 287.7 to 328.4, while the DMI for the institutional construction took a considerable 35% leap to 219.9. That momentum remained positive in August, but the pace of growth slowed, with the commercial DMI reaching 357 and the institutional DMI reaching 231.6.

“The DMI continues to point to stronger construction activity in late 2026 or early 2027 within specific sectors,” said Martin, acknowledging that current external factors do somewhat threaten that outlook. “Following months of uncertainty caused by tariff concerns, owners and developers have started progressing with projects while accepting higher costs. Given the persistent economic and fiscal uncertainty, volatility in planning activity will remain high.”