Forecast: Inflation and a Tough Transition to Post-COVID Economy Ahead for Construction

Forecast expects 2021 construction spending growth but not return to pre-pandemic strength, and inflation that could force the federal reserve to tighten policy more aggressively than planned. Improving COVID-19 statistics are generally good for the economy. As the second quarter of 2021 rolled out, produced an economic-update webinar in which Anirban Basu, economist with the Sage Policy Group, celebrated the U.S. economy’s demonstration of dramatic recuperative power. He also warned that the gradual transition to a post-pandemic economy is misaligning supply and demand at multiple levels of construction in a way that will likely push full recovery of large segments of the industry out to 2022. “For an economy to flourish both the demand and supply sides of the economy must participate. With the federal stimulus coming, demand gets a boost. But supply will be constrained by ongoing lock-down measures not just in America, but in Canada, in South Africa, in Ireland and England, Italy, Spain and Portugal,” says Basu. READ FULL ARTICLE >>