Nonresidential Construction Index

The NRCI eased slightly to 53.4 in Q2 2026, down from 54.5 in Q1, as sentiment moderated across most components while remaining in expansion territory.

Views on the overall U.S. economy and local economies where respondents operate softened but held above 50 at 52.7 and 53.6, respectively. Expectations for their own construction businesses remained the strongest component at 65.2, down from 67.1 in Q1, while sentiment toward construction activity in their local markets was essentially flat at 58.9. Backlog expectations pulled back to 64.3 from 70.4, though still well into expansion territory and signaling solid workload visibility. Cost input indicators continued to weigh on the index, with materials and labor cost expectations at 30.4 each, suggesting persistent but stable escalation pressures. Last, productivity slipped to 50.0 from 53.9, hovering at the neutral line as efficiency gains proved harder to sustain heading into the summer months.

This index, typically found in the North American Engineering and Construction Outlook report, is being published as soon as it’s available. The full report will be released in the coming weeks. Our survey participants enable us to provide vital insights into current trends and market conditions. If you’re interested in contributing, we encourage you to fill out the NRCI sign up form.

The above table and accompanying arrows illustrate how individual components contribute to the overall index score compared to the prior quarter. For most components, scores above 50 signal healthy or expansionary market conditions quarter over quarter. Cost of materials and cost of labor are exceptions whereas lower values in these components indicate expectations for rising prices and serve as a counterbalance.