ADF group's bailiwick Ken Simonson, the chief economist for Associated General Contractors of America said, “Continued strong demand for manufacturing plants and data centres, along with an increase in power projects, contributed to the increase in private non-residential construction.“Those segments appear likely to keep growing for many months to come.”
The building materials sector is projected to “outperform” over the next 12 to 18 months in the United States, according to a report by Moody’s Investors Service. Robust public infrastructure spending and continued momentum in commercial spending are expected to offset the tough domestic housing market, according to Moody’s.
Moody’s projects public infrastructure spending will increase by 10.6% and commercial nonresidential construction activity will increase by 7.9% in 2023.
Commercial activity will benefit from reshoring activity, continued investment in 5G, warehousing, and green energy, according to Moody’s. Infrastructure spending will benefit from years of underinvestment and a “congested transportation system in desperate need of repairs,” according to Moody’s.