2023 Q1 Construction Industry Economic Outlook & Trends
The United States economy remains resilient in the face of three major macroeconomic shocks reverberating across the globe; the biggest land war in Europe since WWII, the highest inflation rate since the 1980s, and the most significant commodity shock since the 1970s continue to stress economic stability worldwide. What happens next will correlate with how these three issues continue to evolve and impact each other.
There is good news, too. As 2023 begins, economic outlooks appear rosier. Inflation is receding, unemployment is at a 50-year low (3.4%), and the Federal Reserve has signaled a slowdown in the pace of interest rate increases. Even more favorable for the construction industry is the ambitious investment the US government has legislated over the past two years. Through the CHIPS Act, the Inflation Reduction Act, and the Infrastructure Act, Congress has initiated a nearly $2T investment into the American economy. This is the nation’s largest economic investment since the New Deal—improving critical infrastructure, investing in green technology, and bolstering national security. Swinerton’s outlook is positive, and our employee-owners demonstrate an unwavering drive to deliver results and achieve new levels of excellence. Our entrepreneurial spirit continues to create opportunity, and this Quarterly Market Analysis spotlights how Swinerton Energy is doing just that.