Wells Fargo Measures Very Optimistic 2022 Contractor Outlook in a Cautiously Optimistic Time

An Optimism Quotient deep in ‘strongly optimistic’ territory showed greater growth than registered after recovery from the Great Recession. How accurate is contractor sentiment likely to be in the face of systemic labor shortages and an erratic pandemic? Economic indicators like Wells Fargo’s Optimism Quotient, based on surveys of contractor sentiment about the future, can be subjective. But this survey, which underpins the Wells Fargo 2022 Construction Industry Forecast, has a history of predicting change in construction industry activity that makes its 44% improvement worth breaking down to study. The Wells Fargo 2022 Construction Industry Forecast released today shows surging optimism among nonresidential contractors and industry equipment distributors for increasing profits and new equipment sales in the year ahead. The benchmark U.S. National Optimism Quotient (OQ) registered 112. Wells Fargo calls any reading above 100 “strongly optimistic,” so it’s curious that Jim Heron, national sales manager for Wells Fargo Equipment Finance’s Construction Group, chooses to call it a sign that industry leaders “ended 2021 feeling cautiously optimistic. READ FULL ARTICLE>>