2023 Q2 Construction Industry Economic Outlook & Trends

The economic, financial, and political landscapes have remained relatively unchanged since the beginning of 2023.

In the United States, the seasonally adjusted Gross Domestic Product (GDP) grew by 1.1% in the first quarter, while inflation dropped significantly and the headline Consumer Price Index (CPI) rate fell below 5%. Meanwhile, the conflict in Ukraine continues to occupy world news headlines.

Major construction indexes suggest improvements. Swinerton’s internal material lead time research indicates that procurement durations decreased or remained steady in 79% of monitored items. This trend correlates with ENR’s seasonally adjusted Building Cost Index, which is now half of what it was in the first quarter. It’s fair to believe that this trend reflects the slight increase in construction confidence as the economy seeks to find equilibrium.