A handful of sectors did most of construction’s heavy lifting to start 2026.

The latest data through February shows several key indicators softening. Nonresidential planning declined for the second straight month. Meanwhile, hiring slowed to the lowest rate on record. Together, the data suggests contractors are growing more cautious about big expansions to pipelines and workforces.

Headwinds have also remained persistent.

Construction input prices, for example, surged at a staggering pace to begin the year, largely driven by rising energy prices and geopolitical tensions. Economists noted those issues could worsen due to the Iran war — the impacts of which have not yet shown up in many data sets — and will likely weigh on activity in the coming months. Some project owners have already begun delaying work as a result.

But activity as a whole hasn’t stalled, reports show.

Contractor backlog ticked up slightly in February, and construction starts showed signs of life as well, particularly in commercial construction. Nevertheless, much of that strength remains concentrated among large construction companies and data center projects. That’s covering up weakness across more traditional construction sectors such as warehouse and healthcare work.

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