KEY POINTS
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October's Expansion Index reading of 1.29 marks the 15th consecutive month of expansion.
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The Expansion Index reading for the month of October 2026 resulted in 9 of 10 categories expanding, and 49 states posting growth, according to ConstructConnect project data.
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The breadth of expansion remains a positive signal for the construction industry, though the gap between the best and worst performing categories and states remains significant.
What is the Expansion Index Reading
The Expansion Index reading for October reached 1.29, meaning ideated construction investment was 29% higher than in October 2025. This month's figure extends the streak to 15 straight months of expansion, the longest run since the industry's 2021-2023 post-COVID ramp-up.
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 reading for October reached 1.29, meaning ideated construction investment was 29% higher than in October 2025. This month's figure extends the streak to 15 straight months of expansion, the longest run since the industry's 2021 - 2023 post-COVID ramp-up. Image and Data: ConstructConnect
What Construction Categories are Expanding
Commercial led all categories in expansion for another month, posting a reading of 2.23, no doubt supported by growth in planned data centers.
Eight other verticals expanded from year-ago levels, with Government, Community, and Military posting greater than 40% expansion in October.
Industrial, as in the September Expansion Index reading, was the only category to contract compared to year-ago ideated spending levels, a reflection of the elevated planned-spending benchmark the category set in 2025 more than current weakness.
A chart of the Expansion Index by Subcategory is shown, October 2026. Commercial led all categories in expansion for another month, posting a reading of 2.23, no doubt supported by growth in planned data centers. Image and Data: ConstructConnect
Where is US Construction Activity Expanding
ConstructConnect US nonresidential construction project data revealed that the Expansion was similarly widespread geographically, in October, with 48 states and Washington D.C. posting readings over 1.0.
Of those states, the Expansion Index revealed that 44 posted expansion greater than 20%, led by Missouri, Montana, and Alaska.
The only exceptions were Arizona and Nebraska. Nebraska registered a reading 2% below year-ago levels, while contractions in Arizona were more significant. Arizona’s reading highlights how megaprojects can lift a reading well above its normal level in a single month, leaving a difficult comparison the following year.
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.
What It Means for Construction
October's Expansion Index reading of 1.29 marks the 15th consecutive month of expansion, with 9 of 10 categories and 49 states posting growth.
That breadth remains a positive signal for the construction industry, though the gap between the best and worst performing categories and states remains significant.
Firms that are able to apply their strategy to geographies and verticals seeing the strongest growth will likely be best positioned to capture the opportunities ahead.
Find Your City: The ConstructConnect Expansion Index
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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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For more information, visit constructconnect.com
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