Construction spending and employment have risen to new records this year, boosted by government outlays for infrastructure, a domestic manufacturing renaissance and a wave of apartment building that got off to a slow start during the pandemic when prices for building materials, such as lumber, were sky high. There are signs of slowdown, to be sure. Apartment construction is expected to decline once the latest batch of buildings is finished. Problems at regional banks are drying up financing for some projects. Spending on home improvement and repairs is forecast to decline over the next year, the first contraction since the depths of the foreclosure crisis in 2010, according to a closely watched barometer of the remodeling industry.
- Date Posted:
- April 28, 2023
Higher defense spending accounted for about one-fifth of economic growth in the first quarter — 21 basis points out of the 1.1% annualized increase in GDP — a Commerce Department report showed. From the second quarter of 2022 to the first quarter of 2023, defense contributed an average of 13 basis points to GDP growth. That’s a sizeable swing from the previous five quarters when declining defense spending was slowing the economy down, with an average drag of 23 basis points over that period.