Construction activity in North America is expected to stabilize but grow modestly in 2026 as the industry navigates high interest rates, uneven private development and strong infrastructure demand, according to FMI’s 2026 North American Engineering & Construction Outlook. While overall spending is projected to rebound slightly, growth will vary significantly by sector as contractors balance risk, financing constraints and shifting project pipelines.
Key findings from the report include:
- Modest spending growth: Total U.S. construction put in place is forecast to increase about 1% in 2026 to roughly $2.2 trillion after a slight decline in 2025.
- Sector divergence: Public infrastructure and government-funded projects are expected to remain relatively strong, helping offset weaker activity in several private building segments.
- Soft private markets: Sectors such as multifamily housing, lodging and traditional office construction continue to face headwinds from high financing costs and economic uncertainty.
- Megaproject drivers: Data centers, infrastructure and certain advanced manufacturing projects are expected to remain key growth engines for the industry.
FMI notes that contractors are increasingly forced to make “sharper choices about where to compete and how much risk to take on” as growth becomes more selective across construction markets.
SOURCE: “2026 Engineering & Construction Outlook” FMI // fmicorp.com/insights/construction-outlook
