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The third quarter 2025 Civil Infrastructure Construction Index (CICI) indicates a mix of cautious optimism and emerging challenges for U.S. engineering and construction firms. Many areas improved modestly from the second quarter; however, persistent inflation and a sharp divergence between public and private sector prospects are tempering overall sentiment.

Key findings include:

  • About 52% of firms reported a higher project backlog than in the same quarter last year.
  • The three-year outlook remains positive across all market segments, with each sector’s 36-month confidence index above 50.
  • Contractors are holding a steady line on staffing, positioning themselves to respond if market conditions shift.

We also discuss cost pressures, productivity and the outlook for the next 3 months, 12 months and 36 months in detail. Gain the information you need to better manage your business.