Investment in non-residential structures has decreased once again, according to numbers compiled by the Associated Builders and Contractors, making up an overall annual decline rate of 15.3%.
The decline marks the 19th such decrease going back 3 years.
The decrease comes as the federal Bureau of Economic Analysis has just released figures showing that the overall U.S. economy expanded during the third quarter of this year at a 2.6% annualized rate.
In a statement, Anirban Basu, chief economist with the ABC, noted that the “major increases in borrowing costs in 2022 has yet to make its statistical mark on much of the economy, but real non-residential investment in structures posted its steepest contraction since the pandemic.”
That decline in fixed investment declined by 2.3% in 2020, only to return last year with a 7.4% gain.
In the first quarter of this year, the numbers were up by 4.8%, only to fall by 5.0% this spring, and now, for July to August of this year, are off by 4.9%.
Despite these trend lines, said Basu, “contractors remain somewhat upbeat about the outlook, and more than 47% of contractors expect their sales to rise over the next six months, according to ABC’s Construction Confidence Index.”
Indeed, readings from that index released two weeks ago revealed contractor confidence in three crucial areas: sales, profit margins, and staffing.
By Garry Boulard
