In their 2018 construction economic forecast, the Associated Builders and Contractors predicts there will be stability in the construction industry’s economy and expansion of nonresidential construction. Their chief economist, Anirban Basu, said that while construction project backlog and contractor confidence remain high heading into 2018, he warns there are risks as a number of potential cost increases could come into play next year:
“With wage pressures building, healthcare costs surging and fuel prices edging higher, inflation is becoming more apparent,” Basu said. “That could translate into some meaningful interest rate increases in 2018, which all things being equal is not good for construction spending. The stock market’s performance has been simply brilliant. But what goes up can go down.” Said the ABC’s Chief Economist, Anirban Basu.