Skip to main content
Jun 2026

2026 CIRT Sentiment Index: Second Quarter

By

Executive Summary

Second-quarter CIRT Sentiment Index results point to a more cautious outlook for the design and construction industry. The CIRT Sentiment Index eased to 63.5 from 66.1 last quarter, while the Design Index declined to 69.6 from 72.0. While confidence in the broader economy softened, firms remain optimistic about their own businesses, supported by strengthening backlogs and continued demand across key market segments. At the same time, rising material costs and growing concerns around leadership succession are emerging as important challenges for industry leaders. A Strong Pipeline Requires a Strong Bench This quarter's survey explored talent strategy and leadership risk, revealing a notable gap between organizational growth and leadership readiness. While firms have invested in talent infrastructure and internal development programs, many report that their next generation of leaders is not yet prepared to step into critical roles. As firms continue to grow, developing leadership capacity may become as important as managing backlog and project execution.

Key findings include:

  • Despite softer economic sentiment, confidence in firms' own construction businesses increased, and the backlog index rose to 75.5, signaling continued strength in project pipelines.
  • Material cost concerns intensified, with 90% of respondents expecting costs to rise next quarter amid ongoing market volatility.
  • While most firms have invested in talent development programs, only 35% report their top emerging leaders are ready now or close to ready for larger leadership roles.
  • Succession planning and leadership pipeline development remain top concerns, with respondents citing aging senior leaders, mid-level leadership gaps and growth outpacing talent readiness as key challenges.

Access the Full Report

Download the complete Q2 2026 CIRT Sentiment Index for detailed insights into economic sentiment, backlog expectations, segment-level outlooks, input cost trends and the leadership readiness challenges shaping the future of the design and construction industry.