Despite signs of growth in parts of the construction market, the U.S. economy is headed for a recession sometime in the next year, according to Anirban Basu, chief economist for Associated Builders and Contractors (ABC), who presented “Construction Executive’s 2023 Q1 Economic Update and Forecast” webinar on April 5.

In summarizing the industry’s first-quarter performance in 2023 and looking ahead to the second quarter, Basu identified positive indicators such as rising numbers of permits for multifamily construction, a healthy ABC Construction Backlog Indicator and steady activity in the manufacturing, commercial and infrastructure sectors. Warning signs include falling single-family building permits, continuing inflation, the persistent skilled-labor shortage and hesitant spending in the office, lodging and recreation sectors.

“The war on inflation is being fought,” Basu said during the CE webinar. “It has not yet been won, and there are more battles ahead.” Watch the full webinar at webinars.constructionexec.com.