A high-level look back at the performance of the U.S. construction industry in 2023 reveals that nonbuilding construction gains were not enough to offset declines in residential and nonresidential construction starts, which were both hampered by high interest rates. However, at the end of the year, the residential and nonresidential construction segments seemed to be moving into a recovery phase as the Federal Reserve (“Fed”) held interest rates steady for a third consecutive time during its final meeting of 2023. In addition, the Fed indicated that it plans to lower interest rates in 2024, which, if realized, should bode well for the construction industry. Nevertheless, the construction industry faces a number of challenges going into 2024, including the ongoing labor shortage as well as a number of geopolitical events that may affect the supply chain and materials costs.
Download the newsletter to read more.
