WASHINGTON, DC — The U.S. financial system expanded at a 2.6% annualized price within the third quarter of 2022, in response to an Related Builders and Contractors evaluation of information launched in the present day by the U.S. Bureau of Financial Evaluation. Funding in nonresidential constructions decreased at an annual price of 15.3% for the quarter and has now contracted in 10 of the previous 12 quarters.
“Right this moment’s GDP report may very well be thought-about the calm earlier than the storm,” mentioned ABC Chief Economist Anirban Basu. “Progress is more likely to gradual considerably going ahead, however for now, the U.S. financial system continues to broaden as customers preserve spending on journey and items, even within the face of considerably elevated inflation.
“The key improve in borrowing prices in 2022 has but to make its statistical mark on a lot of the financial system, however actual nonresidential funding in constructions posted its steepest contraction for the reason that second quarter of 2020 and has now declined in all however two quarters for the reason that begin of the pandemic,” mentioned Basu. “For now, nevertheless, contractors stay considerably upbeat concerning the outlook, and greater than 47% of contractors anticipate their gross sales to rise over the following six months, in response to ABC’s Building Confidence Index.”
Go to abc.org/economics for the Building Backlog Indicator and Building Confidence Index, plus evaluation of spending, employment, job openings, GDP and the Producer Value Index.