Construction Market Report Summer 2022
The construction market is still running at a strong pace, despite the higher interest rates and hyperinflation, but the Architectural Billing Index (ABI) and a Construction Confidence index (CCI) both point to a slowing in construction volume in 2023. We’ve seen relief in some material prices such as lumber and steel, which are trending downward. This will help soften the material inflation rate, however labor will continue to be an issue as the shortage of skilled workers is a long term problem, likely to last for years.
Moving forward, we anticipate the average inflation rate to be in the 1% per month for the remainder of 2022, and perhaps 1/2% – 3/4% per month in 2023.
According to Engineering News-Record (ENR), the Industry Confidence Index dropped 17 points due to the fears of rising interest rates and a potential recession loom in the minds of construction executives. The Index of 44 points indicates negative growth in the near term.
Download the full Summer 2022 Market Conditions Report below for more insights and detailed information on today’s construction market.