Total construction spending saw only modest growth in the first part of the year, hampered by rising costs and prices.
We expect the overall market to be only 0.1% larger by the end of the year. Among all sectors, manufacturing is expected to take the lead with an estimated 19% growth this year. Contending with unending disruption in the logistics sector, producers are finding it easier to move operations back to the US, where supply lines are not as long.
Residential construction continues to be boosted by strong demand for housing. At the end of April, there were a record-breaking 1.6 million units in the pipeline, and the number of units that have been green lit but not begun is also high. Nonresidential construction declined in 2021 but has rallied in the first half of 2022. This is, again, due to the strong manufacturing sector. Offices remain unoccupied across the country, which has tempered growth in the commercial sector.
* Other structures include religious buildings, amusement, government communications, and public recreation projects.