2025 North American Engineering and Construction Outlook: Second Quarter

After a five-year run of more than 40% cumulative growth, FMI’s latest forecast shows construction put-in-place spending increasing just 2% year-over-year. 

While this might not feel like growth when compared to the prior years, you can use these forecasts to inform your strategic planning, understand longer-term trends and make informed decisions about how to position your business.

Key Takeaways Include:

• Total U.S. engineering and construction spending is forecast to rise 2% by the end of 2025, a notable slowdown compared to the 7% growth seen in 2024.
• The absence of standout high-performing segments in 2025 compared to prior years suggests the industry is entering late-cycle conditions. 
• The second quarter 2025 Nonresidential Construction Index (NRCI) dropped sharply to 43.5 from 56.9, a 24% decline from the previous quarter.

Watch Jay Bowman's latest video for insights and analyses on our forecast.

*This forecast was developed amid a highly dynamic and evolving economic landscape. As such, assumptions and outcomes may shift as new data emerges.