Electrical Contractors NAICS 238210

Jul 14, 2026 - Construction Industry Confidence Holds Steady in Q2

• Construction industry confidence held steady in the second quarter, with Engineering News-Record's (ENR) Construction Industry Confidence Index remaining at 54 and its Economic Index staying at 48 for a third consecutive quarter. Index readings of 50 or more suggest a healthy industry. Executives reported weaker views of the current market but slightly improved expectations for the next 12 to 18 months. General contractors and construction managers were the most confident, while design firms improved and subcontractors slipped. Larger firms remained more optimistic than smaller ones. More than 75% of ENR respondents reported upward price pressure. Industry watchers suggest inflation, higher rate expectations, and materials costs are weighing on contractors, though strong demand, especially for data centers, continues to support the market.
• Demand for building design services declined in May 2026 over the prior month, as architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 44.5 in May from April's reading of 48.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 49.4 in May, down from 57.7 in April, and the index for the value of new design contracts decreased from 48.0 to 45.0. The AIA’s Chief Economist, Richard Branch said, "The uncertainty created by the Iran conflict, and substantially higher energy costs, weighed on architect billings in May. Higher interest rates, rapidly rising material costs, and continued labor shortages all contributed to softer demand."

• The Dodge Momentum Index (DMI) decreased 1.9% in June 2026 to 271.7 (2000=100), up from the revised May reading of 277.1. 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 dropped by 6.8%, and institutional rose 10.9%. Dodge’s associate director of forecasting, Sarah Martin, said, "Despite June’s pullback, nonresidential planning remains on solid ground. Data center activity continued to drive the Index, but its pace moderated from the extraordinary levels seen in recent months and drove the DMI to pull back over the month. Otherwise, planning activity accelerated across nearly every other sector.”
• Fitch Ratings lowered its 2026 outlooks for US homebuilding and North American building products to deteriorating, citing weak affordability, mortgage rates near 6.5%, soft consumer sentiment, and slower housing turnover. Fitch expects new home sales to fall 2.5% in 2026, single-family starts to decline 4.5%, and remodeling demand to remain constrained, especially for big-ticket discretionary projects. The slowdown could reduce demand for new construction, renovations, and resale-driven upgrades in the hardware, plumbing, and HVAC equipment markets. However, repair, maintenance, and nondiscretionary categories, including plumbing repair, roofing repair, coatings, HVAC replacement parts, and essential equipment, should prove more resilient. Distributors may face lower volumes, margin pressure from inflation, and cautious customer spending, partly offset by nonresidential activity in data centers and power infrastructure.