First Look: Nonresidential Construction Index
The Nonresidential Construction Index (NRCI) dropped sharply in the second quarter of 2025 to 43.5 from 56.9 — a 24% decline quarter over quarter.
This marks a significant reversal from last quarter’s optimism and is the lowest index score since 2020. The latest reading indicates that most participants expect deteriorating economic conditions and shrinking near-term opportunities. Sentiment declined across all economic indicators, backlogs and nonresidential building segments, while expectations for material costs rose sharply.
The industry is entering an environment marked by volatility and uncertainty, making strategic thinking, agility, resilience and proactive decision-making critical. As such, timely information to help you make decisions is more important than ever. That’s why we will begin releasing our index, typically found in the North American Engineering and Construction Outlook report, 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.
