ARTICLE
According to economists, high-interest rates and slower economic growth will put increasing pressure on construction and manufacturing in 2024. Contractors may experience disparate fortunes depending on their sector of operation. Robust housing activity, high employment, and optimistic consumers will dampen recession risk. Fasten your seat belts and enjoy the ride. Like airline travelers bracing for expected turbulence, the construction industry is preparing for a tricky operating environment in 2024. On the upside, the economy will continue to grow, although at a slower pace. Consumers and businesses are both feeling fairly optimistic, unemployment remains low, capital investments are plugging along at a healthy pace, supply chains are improving, and the all-important housing market is burgeoning. Throwing cold water on the good times, though, is a significant downer that no one can control: Higher interest rates established by the Federal Reserve to control inflation are putting a damper on business activity. Economists are taking note by lowering expectations for the next 12 months. Click here to read the outlook from the Association of the Wall and Ceiling Industry (AWCI).