2022 Q4 Construction Industry Economic Outlook & Trends

Since the onset of 2022, the Federal Reserve has remained steadfast in its mandate to stabilize prices. However, inflation remains a significant economic issue. The Federal Funds Rate is anticipated to increase from zero to around 4% by year end. This aggressive policy—the steepest in at least four decades—has taken a bite out of asset and commodity prices, lowering growth expectations across the globe.

Many private sector markets will presumably continue to underperform as a consequence of higher borrowing costs and reduced market liquidity. But opportunity is elsewhere in education, healthcare, mass timber, energy, and the development of manufacturing and data facilities.

Overall, the United States construction industry is healthy. The architecture billings and construction confidence hold steady, construction starts remain strong, material prices are stabilizing, and unemployment remains at historic lows. We hope that you will find this report valuable and wish all of our clients, family, and friends health and prosperity as we close out another calendar year.