Key indicators in the construction industry showed positive trends in May, but nearly every economic report highlighted the strong performance of data center projects against the weakness in other sectors.

According to Dodge Construction Network data, planning activity and construction starts both rebounded month-over-month in May. Meanwhile, the Associated Builders and Contractors (ABC) reported that contractors overall saw an increase in new work during the month. Bureau of Labor Statistics data showed that construction job openings reached their highest level of the year during this period.

However, this optimism is increasingly concentrated among contractors involved in artificial intelligence infrastructure construction.

Although healthcare and infrastructure projects have supported industry activity in recent months, economic reports show that contractors find the main source of growth remains AI-related construction. ABC Chief Economist Anirban Basu stated that job openings reaching a 10-month high may reflect "unusual demand" for specific positions required in data center construction.

However, outside of these projects, contractors report a more challenging operating environment.

For example, U.S. Census Bureau data shows that private nonresidential construction spending declined for the seventh consecutive month in May. At the same time, construction site costs have not decreased. According to analysis by the Associated General Contractors of America, input prices rose year-over-year in May at the fastest pace since the pandemic.

The following is Construction Dive's roundup report on the latest economic data.