The 2019 economic outlook for the construction industry is positive, according to Associated Builders and Contractors (ABC) Chief Economist, Anirban Basu. The ABC outlines Basu’s forecast for the year, stating, “Job growth, high backlog and healthy infrastructure investment all spell good news for the industry.”
While interest rates and the price of materials increased by 7.9% on a year-over-year basis in October, Basu predicts that a recession is unlikely to happen in 2019, citing indicators like the Conference Board’s Leading Economic Index, which shows that current momentum should continue throughout the year.
However, beyond 2019, the outlook is less clear. Basu warns, “Contractors should be aware that recessions often follow within two years of peak confidence. The average contractor is likely to be quite busy in 2019, but beyond that, the outlook is quite murky.”
Time will tell if Basu’s predictions are correct, and we will continue to keep you updated on the latest news in the construction industry in 2019 and beyond.
Read the full ABC article here.