October 2024 economic summary | Construction Diving

Key economic indicators in the construction sector reflected a mixed momentum in September, driven by interest rate cuts and election uncertainty.

Non-residential planning activity, an indicator of future work, has slowed slightly after months of growth, reflecting cautious optimism in the sector. Input prices have fallen due to lower energy costs, relieving some pressure on builders. Meanwhile, contractor backlogs have rebounded, driven by the recent interest rate cut that has improved financing conditions and boosted builder confidence in most regions of the United States.

Despite these positive signs, construction starts fell in September as some developers paused projects due to potential policy changes.

Still, economists expect another rate cut this week, while contractors suggest more stable construction growth could emerge in early 2025, especially as spending on public projects continues to drive overall construction activity. Read on for details.