Associated Builders and Contractors (ABC) Chief Economist Anirban Basu predicts stability for the construction industry’s economy and expanding nonresidential construction spending in 2018. “With wage pressures building, healthcare costs surging and fuel prices edging higher, inflation is becoming more apparent,” Basu said.
Segments like hotels, office buildings and apartments have helped to fuel construction spending in recent years. Basu says that “a recent reading of the Conference Board’s Index of Leading Economic Indicators suggests that the U.S economy will enter 2018 with substantial momentum. Corporate earnings remain healthy. Global growth is accelerating. Consumers are upbeat. Tax cuts could fuel faster business spending. All of this suggests that the construction recovery that began in earnest in 2011 may have a few more birthdays ahead.”