The first half of 2024 should bring stronger growth in construction, according to Richard Branch, Dodge Construction Network chief economist.
He remains confident that the U.S. economy will remain recession-free this year, despite some of the ongoing and new challenges it faces.
After a year in which the economy and starts slowed considerably, Branch projects a transition to stronger growth for construction.
Releasing the Dodge Construction Network 2024 outlook, he believes there is growing evidence that Federal Reserve Chairman Jerome Powell is done with the ongoing interest rate increases, based on recent employment and data that suggests inflation is dropping.
“I'm never going to say we're mission accomplished here, but I think Chairman Powell is feeling pretty good about what the situation is,” Branch said.
Per the Dodge Construction Network 2024 outlook, total construction starts are expected to gain 7% to $1.2 trillion, after growth slowed to just 1% in 2023 and was down 2% when adjusted for inflation.
“The way we're looking at the construction sector is that we're anticipating that 2024 will bring about more consistent growth, as well as more opportunity in the construction sector, but that the economy will remain challenged at least over the next three to six months,” Branch said. “We think by the end of the year, the US economy is going to be on much more stable footing where there should be more opportunity in the construction market.”
