Construction Key Themes 2026: China and US will regain momentum

Global construction activity declined in 2025 as the Chinese real estate downturn and ‘Liberation Day’ tariffs weighed on activity in China and the US. We forecast activity will rebound 2.9% in 2026, underpinned by four key themes that will define the year.

1. China and US will regain momentum. China is approaching the bottom of the real estate downturn. We expect a rebound in commencements in 2026. In the US, we expect the residential upswing to resume in 2026. The construction outlook remains positive in other regions.
2. Asia’s Construction Tigers will lead global growth. Strong demographic trends, robust foreign investment, and supportive governments will ensure South-East Asia remains home to some of the world’s fastest growing construction markets.
3. Infrastructure investment shifts to utilities. Civil engineering activity will remain the key growth engine as infrastructure work pivots from transportation projects to utilities.
4. Labour shortages remain a structural challenge. A structural worker shortage and weak productivity growth are limiting the industry’s ability to meet infrastructure, climate, and housing targets.

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