The Construction Industry Round Table (CIRT) and FMI released the Q2 2025 CIRT Sentiment Index, revealing a sharp downturn in industry confidence. The overall Sentiment Index dropped to 54.0 (from 67.9), while the Design Index fell more steeply to 44.9 (from 61.8)—marking the second-largest quarterly declines on record.
Key Takeaways
- Material cost concerns reached an all-time high.
- Sentiment dropped across all sectors, with the most significant design declines in international and transportation.
- Tariffs and trade tensions—especially amid heightened U.S.–China friction during the survey period (April 23–May 12)—played a major role in shaping outlooks.
- 46% expect operational disruptions from tariffs; nearly 50% report project delays or cancellations as a concern.
- Most respondents see tariff impacts as short-term (5–9 months), but strategies to mitigate risk include:
- Strengthening contracts
- Increasing domestic sourcing
- Pre-purchasing materials
- Hiring plans are in flux: 50% of firms have reconsidered 2025 hiring strategies, with 41% anticipating a labor demand decline and 36% expecting growth.
The report underscores growing caution in the design and construction sectors as firms navigate a volatile economic and geopolitical landscape.