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Jul 2025

2025 North American Engineering and Construction Outlook: Third Quarter

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The third quarter 2025 edition of FMI’s North American Engineering and Construction Outlook forecasts just 1% growth in U.S. construction spending, down from 7% in 2024. While residential markets face affordability challenges, sectors like data centers, transportation and power infrastructure remain strong.

Key takeaways include:

  • Residential slowdown continues, especially in multifamily (-9%), despite stabilization in single-family and improvements.

  • Nonresidential strength: Transportation, power and data centers show robust growth forecasts.

  • Public infrastructure holds steady, though federal funding is narrowing and shifting to states and the private sector.

Discover which segments are expected to lead through 2026 and where risks and opportunities lie in our report that includes U.S. and Canadian forecasts, sector performance breakdowns and policy implications.

Don't miss Jay Bowman's commentary about how to leverage this quarter's outlook for your business.