Marcum Commercial Construction Index

Fourth Quarter Construction Update: The Good, the Bad, and the Ugly
Issue 42 - Fourth Quarter 2022

The construction industry faced many of the same headwinds that buffeted it throughout 2022 in the fourth quarter, including labor shortages, high interest rates, and elevated materials costs, but still exhibited a surprising amount of momentum. Nonresidential construction spending outpaced inflation both on a quarterly and annual basis, and contractor confidence and backlog improved. Despite the solid performance of late, the economy remains overheated, and that means the Federal Reserve will have to raise interest rates even higher than previously expected. The upshot is that economic momentum will fade as 2023 progresses.