Total U.S. construction spending is forecast at $2.214 trillion this year, down just over 1% from 2025, according to FMI’s Q3 2026 North American Engineering and Construction Outlook (free download, short registration required).

The decline comes after a flat 2025. Manufacturing is driving the decline, the report says. Manufacturing construction is projected to fall 17.4% to $178 billion, as the semiconductor fabs and battery plants fueling a recent boom progress from their heavy-spending phases.

Data centers continue a rapid growth phase and are keeping the broader office category positive. Data center construction is projected to grow 21.4% to $60 billion, now accounting for more than a fifth of all nonresidential building starts.

The power sector is entering its strongest run in years. Growth at 2% in 2026 could be higher but for turbine and transformer lead times. The sector’s growth is set to accelerate more than 8% in 2027—the strongest five-year trajectory of any segment FMI tracks.