KEY POINTS
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ConstructConnect’s February 2026 Expansion Index measured 1.06, indicating a 6 percent year-over-year increase in ideated construction investment.
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The reading marked seven consecutive months of growth, continuing a trend that began in August 2025.
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The Industrial and Military sectors each grew by over 20 percent, while the Government sector also expanded slightly, with a 1.04 reading.
ConstructConnect announced its Expansion Index reading for February 2026 was 1.06, meaning there was 6 percent growth in ideated construction investment compared to the year prior.
February’s reading continues seven straight months of expansion, a trend that started all the way back in August 2025.
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 ConstructConnect Expansion Index reading for the United States was 1.06 in February 2026, meaning there was a 6 percent increase in the value of ideated construction investment compared to February 2025. Image and Data: ConstructConnect
Sector Highlights
The Industrial and Military sectors continued with their sequential months of expansion, each growing by over 20 percent in the latest reading. Government was the only other vertical to expand, although minimally, with an Expansion Index reading of 1.04.
All other verticals contracted compared to their year-ago spending outlooks. Residential and Medical both extended their recent contractions, falling by more than 10 percent in February alone.
The chart shown is of the Expansion Index by Subcategory. Image and Data: ConstructConnect
Geographic Analysis
Sixteen states experienced 10 percent or higher expansion in February. Arizona continues to record the nation’s highest Expansion Index reading, again powered by strong growth in ideated Industrial investment.
Missouri and Wyoming follow, both seeing growth in ideated Commercial and Military construction. In contrast, 18 states had 10 percent or larger contractions in ideated investment dollars.
Note: High Expansion Index readings reflect growth in ideated* investment dollars rather than project count, meaning a single large project can significantly elevate a state’s index, particularly in smaller construction markets.
Consider Combinations of Verticals and Geographies for Best Project Opportunities
February’s Expansion Index reading indicates slowing expansion at the national level. However, it is clear that this expansion is not uniformly spread across the nonresidential construction industry by vertical or geography.
This imbalance in industry demand means that future success will increasingly depend on knowing where to seek future opportunities.
Knowing which combinations of verticals and geographies present the greatest opportunities to your firm could make a significant difference in future performance and profitability.
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*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.
About ConstructConnect
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
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