Nonresidential Construction Index

The third quarter 2025 Nonresidential Construction Index (NRCI) rose to 49.8 from 43.5 in the second quarter, indicating a modest recovery following last quarter’s sharp decline. While sentiment improved across most index components, the overall score remains below the growth threshold of 50, signaling cautious optimism. Respondents reported a more favorable outlook on the U.S. and local economies, business conditions and backlogs, though concerns persist around rising input costs and broader economic uncertainty.

The industry is entering an environment marked by volatility and uncertainty, making strategic thinking, agility, resilience and proactive decision-making critical. As such, timely information to help you make decisions is more important than ever. That’s why we will begin releasing our index, typically found in the North American Engineering and Construction Outlook report, as soon as it’s available. The full report will be released in the coming weeks. Our survey participants enable us to provide vital insights into current trends and market conditions. If you’re interested in contributing, we encourage you to fill out the NRCI sign up form.

The above table and accompanying arrows illustrate how individual components contribute to the overall index score compared to the prior quarter. For most components, scores above 50 signal healthy or expansionary market conditions quarter over quarter. Cost of materials and cost of labor are exceptions whereas lower values in these components indicate expectations for rising prices and serve as a counterbalance.