Automotive Industry — Chilly Start to 2026

U.S. auto sales began 2026 with a moderate performance after a stronger year-end finish in 2025, reflecting typical seasonal patterns and some softening demand. January 2026 light vehicle sales were projected to reach around 1.13 million units, translating into a seasonally adjusted annual rate (SAAR) of about 15.2 million units. This pace was lower than December’s roughly 16.0 million SAAR and indicates a cooling trend compared to late-2025. Analysts attributed part of this moderation to harsh winter weather and Winter Storm Fern, which disrupted dealership traffic and likely delayed some purchases. This seasonal slowdown is consistent with historical patterns, as early-year sales are typically lighter.

Looking ahead, data from S&P Global Mobility shows expectations that total U.S. auto sales for all of 2026 could come in slightly below 2025 levels, with a small projected decline in overall volume. Broader market dynamics also contributed to the muted start: consumer affordability pressures remain significant, driven by high vehicle prices and tighter financing terms. Another notable aspect of early 2026 was the continued weakness in electric vehicle (EV) sales and market share, with battery electric vehicles making up a relatively small percentage of January’s total. The soft BEV performance reflects changing incentive structures and the industry’s adjustments following the expiration of federal tax credits that previously boosted EV demand. This evolving policy landscape and affordability constraints are expected to continue shaping purchasing behavior and automaker strategies through the first half of the year. Overall, the U.S. auto market is entering 2026 in a cautious phase, balancing weather effects, economic headwinds, and shifting consumer preferences.

Construction Industry — Planning Slips as Commercial Momentum Weakens

In January 2026, nonresidential construction planning fell by 6.3 percent, suggesting that momentum in the broader construction market eased after gains at the end of 2025. This decline was driven by weaker planning activity across most commercial and institutional project categories — including office, warehouse, and healthcare developments — which pulled back from the elevated levels seen late last year. The index of planned projects, which typically leads actual construction spending by about a year, reflects short-term recalibration in the sector.

Despite the month-to-month drop, the overall planning index remained significantly above year-ago levels, demonstrating that activity was still historically elevated compared to early 2025. Analysts noted that data center construction continued to be a standout segment, with major high-value projects entering planning even as other categories softened. This trend highlights the ongoing influence of technology infrastructure demand on the construction pipeline.

Industry observers suggest that January’s slowdown does not signal a broad collapse but rather a rebalancing of growth, influenced by rising costs, tighter financing conditions, and selective demand in specific project types. These forces are expected to shape construction planning and investment throughout 2026.

In summary, both sectors showed early-year softness: auto sales faced seasonal and economic headwinds with EV demand under pressure, while construction planning experienced a pullback in most traditional project categories even though overall momentum remains strong year-over-year.