Today’s Construction Economy Report – Q2 2025

U.S. construction is beginning to feel the delayed impact of rising rates, tightening capital, and trade uncertainty, with growth expected to slow and costs to rise in 2025. MSI Economics forecasts elevated risk-driven inflation led by workforce constraints and material availability. For the rest of 2025, contractors are expected to rely more on backlog and to seek escalation clauses to offset rising material prices. While strength persists in data centers and publicly backed sectors, uncertainty in federal funding could slow delivery in the latter. The direction of interest rates and material pricing will shape the second-half outlook. The price paid for new nonresidential construction is expected to increase by 2.9% year over year (YoY) 2025, vs. just 0.1% revised in 2024.

Download our Q2 Construction Economy Report and get all the details from MOCA Construction Economist, Brandon Michalski.

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About Today’s Construction Economy Report

Prepared by MOCA Systems, Inc.’s Principal Construction Economist, Brandon Michalski, Today’s Construction Economy is a quarterly must-read for industry leaders seeking comprehensive, data-driven analysis for the nonresidential construction sector.

This in-depth report synthesizes insights from hundreds of trusted sources, including news, analytics, and industry experts, to provide timely, actionable intelligence to thousands of construction professionals. By integrating hard economic data with expert commentary, Today’s Construction Economy offers clear, informed analysis to help stakeholders navigate market shifts, anticipate trends, and make confident strategic decisions.

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Meet the Author

Brandon Michalski

Principal, Construction Economist

Brandon Michalski is the lead economist for MOCA Systems, Inc., a leading owner’s representative firm providing program and project management services. Brandon’s decade in the mining and heavy construction industries provides a foundation for subject matter expertise. He holds a Master of Science in Applied Economics from Johns Hopkins University in Baltimore, MD as well as a Bachelor’s Degrees in both Mining Engineering and Biology from West Virginia University in Morgantown, WV. Brandon currently lives in Pittsburgh, PA with his family and enjoys hiking and camping.