KEY POINTS
-
The January Expansion Index for the U.S. was 1.13, reflecting a 13% year-over-year increase in ideated construction investment, and marking six consecutive months of growth.
-
Industrial, Commercial, and Military sectors drove the expansion, while Residential and Medical sectors continued to contract.
-
Growth was geographically uneven, with 12 states, led by Arizona and New Mexico, showing significant expansion, while 20 states saw contractions of 10% or more.
Expansion Index Increases for Sixth Straight Month
ConstructConnect announced the January Expansion Index reading for the United States was 1.13, meaning there was a 13% increase in the value of ideated* construction investment compared to January 2025. This reading marks six straight months of year-over-year expansion, showing some potential future growth following a strong second half of 2025 for the index.
The index’s recent advancement was once again powered by the burgeoning Industrial, Commercial, and Military verticals. On the other hand, only two sectors contracted by more than 10%, Residential and Medical, both of which have not seen an expansionary reading in several months.
Geographic Differences in Expansion
Significant expansion was seen across a broader number of states than in previous months, with 12 states reaching an Expansion Index of over 10%. Arizona and New Mexico led this group, both powered by significant expansion in Industrial construction spending. In contrast, 20 states experienced a contraction of 10% or more.
The ConstructConnect Expansion Index reading for the United States was 1.13 in January 2026, meaning there was a 13% increase in the value of ideated* construction investment compared to January 2025. Image: ConstructConnect
Sector Highlights
While most sectors are experiencing higher readings than in previous months, only three of ten verticals, including Industrial, Commercial, and Military, reached expansion in January. Similarly, only 12 of the 50 states reached notable expansion. This means that firms must identify and position themselves in growing construction verticals and geographies to potentially see success in the future.
Outlook: Opportunities and Challenges
January’s Expansion Index reading shows potential for the construction industry. Several consistent months of rising ideated construction spending could signal coming investment. However, potential spending is not expected to be evenly dispersed across the industry.
Stay Connected
Stay connected with ConstructConnect News, your source for construction economy insights, market trends, and project news.
*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.
