KEY POINTS
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The Expansion Index for August came in at 1.30, a 30% year-over-year increase in ideated construction investment compared to August 2025.
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The August reading marks the 13th consecutive month of expansionary readings; however, the lower reading compared to prior months suggests slowing expansion.
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Commercial led all categories with a reading of 2.47. Expansion levels pulled back from recent highs elsewhere but held across 9 of 10 categories.
Overall Performance
The Expansion Index for August came in at 1.30, a 30% year-over-year increase in ideated construction investment compared to August 2025. The August reading marks the 13th consecutive month of expansionary readings; however, the lower reading compared to prior months suggests slowing expansion.
Note: Ideated means any and all projects in some stage of preconstruction. This includes projects whose groundbreaking date may be many years in the future. All such future projects have no guarantee to either achieving a groundbreaking nor reaching to construction completion.
The Expansion Index for August 2026 came in at 1.30, a 30% year-over-year increase in ideated construction investment compared to August 2025. The August reading marks the 13th consecutive month of expansionary readings. Image and Data: ConstructConnect
Select Sector Analysis
Commercial construction led all categories with a reading of 2.47. Expansion levels pulled back from recent highs elsewhere but held across 9 of 10 categories, with seven still posting year-over-year gains exceeding 20%.
Industrial was the lone exception, posting a reading of 0.74.
A chart of the Expansion Index by Subcategory is shown, August 2026. Image and Data: ConstructConnect
Geographic Highlights
Expansion was widespread geographically, reaching 48 states and Washington D.C. Forty of those states posted year-over-year gains exceeding 20%, with Alaska, Missouri, and Montana seeing the largest expansion.
The exceptions were Arizona and Nebraska, both of which contracted in August compared to year-ago levels. Arizona had ranked as the nation's top expansionary state for several consecutive months; however, that was due to exceptional and unsustainable megaproject activity during 2025.
What It Means for Construction
August's reading of 1.30 extends the streak of expansion to a 13th consecutive month. While cooler than recent highs, the reading reflects slowing growth, reaching 9 of 10 categories and 48 states.
For construction firms, the sustained expansion signals a healthy near-term pipeline, but with growth distributed unevenly across markets, success will come from targeting the right opportunities in the right places.
Note: High Expansion Index readings reflect growth in ideated investment dollars rather than project count, meaning a single large project can significantly impact a state's index, particularly if the state has a smaller construction market.
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