WHAT WE LEARNED IN JANUARY: CONTRACTORS OPTIMISTIC DESPITE COOLING MOMENTUM
The construction industry’s momentum faded somewhat over the past few months. Nonresidential spending growth has stalled, employment growth has slowed to a crawl and materials prices jumped higher in January. Interest rates, which appear set to remain higher for longer, continue to weigh on the construction industry. Despite all this, however, contractors remain optimistic about the next two quarters.

MATERIALS PRICES SURGE IN JANUARY
Construction input prices rose 1.4% in January, the largest month-over-month rise in two years. Higher energy prices and start-of-year price increases explain some of the sharp rise, and purchasers rushing to buy inputs before tariffs go into effect also put upward pressure on prices. With demand expected to increase and ongoing uncertainty regarding trade policy, input prices will likely trend upward over the next several months.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.