Construction may weaken in 2023

Seeking Alpha:

Construction In North America: U.S. Hands The Baton To Canada And Mexico

https://seekingalpha.com/article/4506625-construction-in-north-america-us-hands-baton-to-canada-and-mexico

“The US construction sector has outperformed Canada and Mexico over the past 18 months, but the headwinds facing the US are now intensifying.

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In the US, construction output fell 8.5% in real terms in the first quarter of 2021…

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The US housing market looks vulnerable in this environment. House prices nationally have risen more than 30% since the start of the pandemic, outpacing the increases in wages and thereby making it more challenging to save for a deposit to buy a property.

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It also implies a downside risk for residential construction in 2023. Homebuilders' profits are already being squeezed by rising labour, energy, and raw material costs and if sold new home prices come under downward pressure, we could see residential construction weaken.“