National healthcare construction spending increased .1% in November, according to an Associated Builders and Contractors’ analysis of data published by the U.S. Census Bureau. On a year-over-year basis, healthcare construction spending is down 1%.
“Contractor confidence surged post-election,” said ABC Chief Economist Anirban Basu. “Many contractors expect a combination of deregulation and tax cuts to support greater activity and profitability going forward, including substantial investment in traditional energy sectors and manufacturing. Still, there are reasons for concern.
“With inflation remaining stubbornly high and potentially accelerating going forward, interest rates stand to stay higher for longer, said Basu. “Prospective tariff increases threaten to push construction materials prices higher, and shifting immigration policies could expand future worker shortages. Only time will tell whether the recent upswing in optimism will prove justified.”
