Machinery, Engineering & Construction "Construction starts surged in May" Fisher

Research evidence excerpt

Machinery, Engineering & Construction "Construction starts surged in May" Fisher

Global Research

18 June 2026ab

Machinery, Engineering & Construction Equities

AmericasConstruction starts surged in May

Industrial

Steven Fisher, CFA

Non-res starts: monthly +61.7% YOY, L3M +30.9% YOY, L6M +20.5% YOY, L12M Analyst

+20.9% YOY steven.fisher@ubs.com

Monthly infrastructure starts increased 105.2% YOY after a 28% increase in April. +1-212-713 8634

The increase was driven by Power (+284% YOY), Bridges (+369% YOY), and Avinatan Jaroslawicz

Streets and Highways (+57% YOY). On a L6M/L12M basis, infrastructure starts Analyst

were up +32.8% YOY/+33.2% YOY. avinatan.jaroslawicz@ubs.com

+1-212-713 1405

Monthly buildings starts increased 29.3% YOY, driven by Data Centers and

Judah Aronovitz

traditional Office (both increased +138% YOY), and Manufacturing (+117%

Associate Analyst

YOY). Most of the commercial categories showed declines, including Warehouses judah.aronovitz@ubs.com

(-46% YOY), Stores & Restaurants (-14% YOY), Amusement (-19% YOY), and +1-212-713-4881

Parking Garages and Automotive Services (-21% YOY).

Lauren Sullivan

The May starts strongly align with our message on non-res construction Associate Analyst

lauren.sullivan@ubs.com

spending as starts typically lead construction put in place:

+1-212-713 8230

We expect a re-acceleration in non-res construction spending in 2H26 driven by Amit Mehrotra

data centers, power, manufacturing (pharma & semis), and infrastructure. The Analyst

starts in those categories support our view. amit.mehrotra@ubs.com

+1-201-352 1410

We expect a slow recovery in the commercial category due to elevated long-term

Julian Radlinger, CFA rates. We assume a more prolonged trough, with commercial construction

Analyst