Executive summary
Construction industry braces for slower growth in a cooling economy
The US economy is weakening, despite resilient preliminary Gross Domestic Product (GDP) growth figures being recorded in Q2 2024. For now, weakening does not indicate an expected recession or downturn, but a reduction in the pace of economic growth and greater slack in the labor market.
America’s construction industry is by no means safe from that softening. It may even lead the curve, with a slew of indicators suggesting that 2024 will experience benign growth overall and 2025 could slow further.
The same can be said of industry pricing. Should the economy contract, that would be a typical leading indicator for industry bid price corrections. In the absence of that, construction continues to cost more, albeit increases are less vigorous than before.
The overall picture is one of a slowing, but still growing, construction industry operating within a wider economy that is hopefully geared up for a soft landing.
