Second Quarter Construction Update: The Good, (The Strictly Okay), The Bad, and The UglyIssue 44 - Second Quarter 2023
The economy has held up better through the first half of 2023 than quite literally anyone predicted. While a recession seemed like a near certainty at the start of the year, the possibility of a soft landing is now firmly in play. Despite the improved outlook, however, several risk factors remain at play; inflation is still well above the Federal Reserve’s 2% target, the goods side of the economy is contracting, and consumer spending has softened due to rapid price increases over the past two years.
Contractors, meanwhile, continue to grapple with labor shortages and elevated material prices. Certain construction segments (like manufacturing) will retain momentum throughout 2023, while others have weakened in the face of higher interest rates and tighter credit conditions.
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