THIS QUARTER

Construction is currently being driven by a strong domestic economy and growth of nonfarm business-sector output. As output growth rises (from 1.6% two years ago to 3.6% this year), businesses are driving investment in plants and equipment to create capacity to keep pace with demand. The recent spike in domestic oil prices is adding to this demand, as producers have increased investment in energy-related production. In addition, incentives included in the Tax Cut and Jobs Act are boosting fixed investment in equipment from 6.1% last year to 7.5% this year. All of this translates to growth in construction. READ MORE

BILL RODGERS | MANAGING PRINCIPAL + SENIOR ECONOMIST | brodgers@ccorpusa.com