Construction and Mining Equipment Wholesalers NAICS 423810

Nov 14, 2025 - Construction Planning Weakens

• The Dodge Momentum Index (DMI) decreased 7.1% in October 2025 to 283.3 (2000=100), down from the upwardly revised September reading of 304.8. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component declined by 2.9%, and institutional fell 15.2%. For the commercial sector, steady planning levels for data centers, retail stores, and office buildings were not enough to offset weaker warehouse and hotel planning. Institutional planning dropped amid a downturn in education and healthcare activity. Dodge’s associate director of forecasting, Sarah Martin, suggested that planning activity may continue to soften amid rising labor and materials expenses and macroeconomic uncertainty.
• North American construction and engineering spending in 2026 is expected to rise 1% after decreasing a projected 1% in 2025, according to FMI’s fourth-quarter 2025 North American Engineering and Construction Outlook. With a rise of 7%, the office market will lead 2026 nonresidential construction spending growth, followed by sewage and waste disposal (+6%), conservation and development (+5%), power (+4%), transportation (+4%), and water supply (+4%). However, spending on lodging, commercial, manufacturing, and public safety will see single-digit declines, while educational and communications will be flat. Residential construction spending is expected to rise 1% in 2026. Multifamily construction is forecast to decrease by 2% in 2025, amid oversupply in some key markets and weak rent growth. Single-family construction is projected to increase 1% in 2025, as stubbornly high interest rates and elevated home prices weigh on demand.

• Multifamily developer confidence improved in the third quarter of 2025 but remained in negative territory, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose six points in Q3 2025 to 46 compared to the third quarter of 2024. The Multifamily Occupancy Index (MOI) decreased by one point to 74 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. While the MPI index indicates weakness in the multifamily construction market, the softness is mostly concentrated in mid-to-high-rise and condominium development, while developers of low-rise and subsidized rental properties are more optimistic.
• During a webinar in October, Associated Builders and Contractors (ABC) chief economist Anirban Basu warned of tightening conditions for the U.S. construction industry, with rising interest rates, material costs, and financing challenges threatening project viability, according to Construction Dive. While data center construction remains strong, driven by investments in AI infrastructure, other sectors, such as commercial, manufacturing, and public infrastructure, are cooling due to tariffs, saturated markets, and dwindling government funding. Contractors outside the data center space report shrinking backlogs and reduced deal flow. The expiration of federal infrastructure funding in 2026 may further dampen demand.