In May, the Expansion Index climbed to 1.48, representing a 48% year-over-year increase in ideated construction investment compared to May 2025.
This achievement marks ten consecutive months of growth and stands as one of the highest recorded readings for the U.S. Expansion Index.
May's expansion extended across all ten construction verticals, with each sector achieving ideated growth of more than 10%.
The Expansion Index climbed to 1.48 in May 2026, representing a 48% year-over-year increase in ideated construction investment compared to May 2025.
This achievement marks ten consecutive months of growth and stands as one of the highest recorded readings for the U.S. Expansion Index.
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.
In May 2026, the Expansion Index climbed to 1.48, representing a 48% year-over-year increase in ideated construction investment compared to May 2025. This achievement marks ten consecutive months of growth and stands as one of the highest recorded readings for the U.S. Expansion Index. Image and Data: ConstructConnect
May's expansion extended across all ten construction verticals, with each sector achieving ideated growth of more than 10%.
Industrial and Commercial construction led the way once again, with expansion levels of 2.27 and 2.02, respectively.
Four other categories also saw significant growth, including Government at 1.49, Civil at 1.34, and both Military and Residential at 1.23.
Community, Medical, and Retail sectors experienced more moderate increases.
A chart of the Expansion Index by Subcategory is shown. Image and Data: ConstructConnect
Building on the broad expansion, May 2026 saw 48 states and Washington, D.C., reporting expansionary readings.
Additionally, 34 states recorded notable growth in ideated construction spending, with Expansion Index readings exceeding 1.2.
North Dakota maintained its position as the state with the highest Expansion Index, driven by growth in Civil and Industrial sectors.
Montana and Arizona completed the same top three rankings as last month, with Montana's growth fueled by Commercial activity and Arizona's by Industrial.
Conversely, only two states experienced contraction compared to year-ago levels. Vermont, with a reading of 0.93, and Nebraska, at 0.77, were the only states with Expansion Index readings below 1.0 in May.
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.
May’s Expansion Index of 1.48 represents the strongest point in the ten-month expansion streak, with growth reaching a broader range of geographies and categories than in any previous month.
All ten construction verticals, along with 48 states and Washington, D.C., recorded expansionary readings, highlighting widespread increases in ideated construction spending.
In addition to being widespread, much of the growth was substantial. Every vertical achieved growth of 10% or more, while 34 states posted significant increases exceeding 20%, underscoring the strength of the current expansion.
In this dynamic growth environment, identifying areas of sustained growth remains critically important.
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