Report published September 24, 2026

Non-Residential Construction: Moderation in Data Centers Weighs on Planning While Billings Improve Sequentially

Goldman Sachs · September 24, 2026

August non-residential construction indicators showed mixed sequential improvement, as commercial architecture billings rose to 50.4 and contractor backlogs increased to 8.5 months despite moderation in data center planning. Goldman Sachs maintains positive views on Armstrong World Industries and Carlisle Companies due to specific vertical outperformance and re-roof demand.

Read the full report

Read the remaining 4 pages

View Report Sign in

Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.The Dodge Momentum Index remained flat sequentially in August at 282.0 (down 0.4%) due to data center planning moderation, though institutional planning grew 4.9% sequentially and overall index planning is up 4.2% YoY.
2.The Architecture Billings Index (ABI) improved to 47.2 in August from 46.6, driven by commercial rising above 50 (to 50.4), though overall billings have contracted for over 20 consecutive months amid elevated borrowing costs.
3.Contractor backlogs expanded by 6% sequentially to 8.5 months, supported by western and midwestern markets, while the Construction Confidence Index for sales rose to 62.0 with 58% anticipating sales growth over the next 6 months.

Growth in Key Verticals Excl. Data Centers Continues While Billings Grow
Key Macro Factors
Architecture Billings Index
Dodge Momentum Index
Associated Builders and Contractors (ABC) Indices
Office Employment
Industry-Specific Indicators
Office Utilization Moderates Sequentially But Grows YOY

Report data

Exhibit 1: Commercial/Industrial Billings Improved Sequentially in August While Institutional Declined on a Trailing 3-Month Basis

Metric	Estimate	Context
Architecture Billings Index (ABI)	47.2 index	ABI improved from 46.6 in July, driven by commercial rising to 50.4.
Dodge Momentum Index	282.0 index	Commercial fell 3.0% seq while institutional planning rose 4.9% seq.
Contractor Average Backlog	8.5 months	Non-residential construction contractor backlog was led by South at 9.8 months and West at 8.3 months.
Construction Confidence Index (CCI) for Sales	62.0 index	58% of contractor members expect an increase in sales over the next 6 months.
Office Utilization Across Metros	53.0%	Office card swipes in top 10 metros were 370 bps below post-pandemic high of 57% in March.

Source: American Institute of Architects; Dodge Data & Analytics; Associated Builders and Contractors; Kastle Systems. This is a dated model snapshot, not a live forecast.