Early economic signals suggest construction has started 2026 with less momentum.

The latest data available through early March showed rapid growth in megaprojects in 2025, followed by the softening of several key construction indicators to kick off 2026. For example, contractor backlog slipped to a four-year low in January, the latest month for which data has been reported, and planning activity tumbled.

Groundbreakings across much of the building sector also did not improve to begin the year. Though the total number of starts increased, a handful of power and utility projects shouldered that growth. A closer look at the start activity showed a brewing slowdown in commercial and institutional work.

But despite those gathering clouds, contractor sentiment holds strong.

That could be due to the main construction drivers still showing a growth story, with more runway ahead. Data center construction continues to dominate the construction pipeline. Energy and infrastructure work are also propping up nonresidential construction activity.

And from a broader perspective, some indicators suggest conditions are healthier today than a year ago. Project stress ticked up slightly in January due to more delays, for example, but the index sits well below year-ago levels due to much improvement around construction abandonments.

Of course, all of those positives could change as construction faces continued tariff pressures. Input prices climbed again in January, with many key materials such as copper, cable, iron and steel getting pricier. Economists watching trade policy warn those increases could persist this year.

Here, Construction Dive rounds up the latest economic data for builders.