By Brett Sinsabaugh, CPA, CCA, Partner
A closer look at CICPAC’s August 2026 economic newsletter
The construction industry is navigating a market where strength in some areas is being met by significant pressure in others. Economic activity remains resilient, but elevated borrowing costs, rising material prices, workforce constraints and supply chain challenges are creating a complex environment for construction leaders.
Keiter is proud to collaborate with Construction Industry CPAs and Consultants Association (CICPAC) to share the latest Economic Newsletter for the Construction Industry. The August 2026 report takes a closer look at the economic conditions affecting construction and the trends that could influence the industry in the months ahead.
Key trends from the August 2026 report
The latest report highlights several factors influencing the construction industry, including:
- Interest rates and financing conditions
- Rising construction material costs
- Labor availability and wage pressures
- Supply chain and transportation challenges
- Diverging residential and nonresidential construction activity
One of the clearest themes is the increasingly divided construction market. Data centers, power generation and certain civil projects continue to generate significant activity, while many other sectors remain more sensitive to high borrowing costs and rising expenses. The report notes that data center development remains particularly strong, while power generation has become the largest nonresidential sector by nominal dollars of spending.
At the same time, construction material prices continue to climb. The Producer Price Index for construction materials increased 9% year over year through June, with additional pressure affecting materials such as copper, steel and aluminum.
Interest rates remain another important factor. Elevated Treasury yields are keeping mortgage and commercial borrowing rates high, limiting activity in residential construction and delaying some nonresidential projects. The report anticipates relatively flat construction growth through the end of 2026 before potential acceleration in 2027.
What these trends mean for construction leaders
With conditions varying significantly across sectors, understanding the broader economic picture can help construction leaders evaluate opportunities, anticipate potential challenges and make informed decisions about investments, financing and workforce needs.
As Opportunity Advisors, our team can help you put these trends into context and consider how changing market conditions may affect your organization. CICPAC’s quarterly economic report provides another resource for staying informed as the industry continues to evolve.
Explore the full report
Read the full August 2026 CICPAC Economic Newsletter for a closer look at the trends shaping construction and the economic outlook ahead. To discuss what these developments could mean for your organization, connect with our team.
April CICPAC Newsletter
About the Author
Brett Sinsabaugh, CPA, CCA, Partner
Brett’s client focus is primarily in the real estate and construction industry. He also provides financial statement audit, assurance, and employee benefit plan audit services to privately-held businesses in the manufacturing, retail and distribution, and technology industries, as well as membership organizations and trade associations. Brett is a member of the Firm’s Employee Benefit Plan audit team and Real Estate and Construction industry team.
More Insights from Brett SinsabaughThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
