The construction market in the United States ended 2019 in a precarious position. The disruption of the American economy in Q1 2020 may usher in a period of significant decline. This report from the Cumming Construction Management, Inc. sheds expert light on the subject that has affected us all so greatly.
The strength of the construction industry is tied tightly to the performance of the overall economy, as capital investments like construction projects rise and fall in sync with market cycles. In the beginning of 2020, the U.S. economy was growing but it was weighed down by risk and uncertainty and was vulnerable to shocks. Over the course of this quarter, the economy has been struck by the deeply disruptive shock of the COVID-19 pandemic. U.S. GDP growth is now expected to slip into negative territory in Q2, and the global economy may fall into recession with it. This drop in economic fortunes could lead to a significant fall in construction activity, though the severity of this situation is highly dependent on the further course of the outbreak and reactions to it.
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