The main economic indicators of the construction sector reflected a contrasting pace in September, influenced by interest rate cuts and electoral uncertainty.
Non-residential construction activity, an indicator of future work, cooled slightly after months of growth, reflecting cautious optimism in the sector. Input prices fell due to lower energy costs, which eased some pressure on builders. Meanwhile, the contractor portfolio rebounded, boosted by a recent rate cut that improved financing conditions and boosted builder confidence in most regions of the US.
Despite these positive signs, construction starts fell in September as some developers halted projects amid potential policy changes.
Still, as economists forecast another rate cut this week, contractors suggest steadier construction growth may emerge in early 2025, particularly as spending on public projects continues to boost activity general construction. Read on for more details.
