The construction industry experienced a slower third quarter, even as the economy posted unexpectedly robust GDP growth. Many firms find themselves in a holding pattern, with significant projects and spending initiatives on hold until after the election.

Looking ahead, a slight softening in GDP is anticipated in the coming months. However, a resurgence in growth is expected to follow, coinciding with further interest rate cuts. This should lead to a strengthening in sectors sensitive to interest rates, which will eventually benefit the broader economy. Additionally, a cooling labor market and a rise in the unemployment rate are anticipated as the effects of current monetary policy continue to play out.

For the construction sector, this translates to continued leveling of momentum until demand begins to pick up again in 2025. In the near term, the growth of aggregate input prices is expected to moderate until demand strengthens, bringing pricing patterns back to more familiar levels.

Overall, while the current landscape presents challenges, signs of potential recovery are on the horizon as the market adjusts to evolving economic conditions.