KEY POINTS
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The Expansion Index for July came in at 1.53, representing a 53% year-over-year increase in ideated construction investment compared to July 2025.
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The index has now remained in expansionary territory — a reading above 1.0 — for 12 straight months.
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July's reading of 1.53 ranks among the highest levels on record, with strength spanning both categories and geography.
Overall Performance
The Expansion Index for July came in at 1.53, representing a 53% year-over-year increase in ideated construction investment compared to July 2025. With July's figure, the index has now remained in expansionary territory — a reading above 1.0 — for 12 straight months.
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 July came in at 1.53, representing a 53% year-over-year increase in ideated construction investment compared to July 2025. The index has remained in expansionary territory — a reading above 1.0 — for 12 straight months. Image and Data: ConstructConnect
Select Sector Analysis
The expansionary trend across construction categories seen in recent months extended into July. All ten construction categories expanded compared to year-ago levels, again led by Industrial and Commercial, which reached readings of 2.50 and 2.07, respectively.
Other notable increases came in Civil, Community, Education, Medical, and Residential, all of which expanded more than 20% from year-ago ideated spending levels.
A chart of the Expansion Index by Subcategory is shown, July 2026. Image and Data: ConstructConnect
Geographic Highlights
Expansion spread broadly across the US as well, with 49 states plus Washington, D.C. reaching expansionary territory in July. Of those states, 34 saw ideated spending rise at least 20% above year-ago levels, meaning their Expansion Index reading exceeded 1.2.
The only contracting state in July was Nebraska, where significant contractions in Commercial and Medical construction pulled its Expansion Index reading down to 0.88.
What It Means for Construction
July's reading of 1.53 extends the expansion to a twelfth straight month and ranks among the highest levels on record, with strength spanning both categories and geography.
For construction firms, the broad expansion points to a potentially robust near-term pipeline, but the opportunities likely won’t be evenly spread. In this environment, success will come from targeting the markets primed for growth.
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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