US Construction Economy At-a-Glance
January 2025
Construction markets are showing a mix of pressure and opportunity.
🏠 Single-unit housing starts remain constrained by high mortgage rates.
🏢 Office construction is stabilizing, with mild growth expected through 2026 and stronger improvement developing into 2027.
🏬 Warehouse construction is emerging from its downturn, with activity rising from early 2026 through at least 2028.
🏭 Manufacturing construction continues to decline after years of elevated activity, with softness likely into late 2027.
🏥 Healthcare and education construction remain relatively stable, supported by resilient demand, demographics, and public funding.
For construction leaders, this uneven outlook reinforces the need for a forward-looking strategy that accounts for market-specific timing rather than broad sector assumptions.
Complex Consumer Profiles Beneath the Coming Retail Growth
January 2025
“Would it surprise you to know that, despite the doom and gloom in the news throughout 2025, consumers’ balance sheets generally improved? Not only that, there was even upward momentum in discretionary segments late in the year.
Annualized data through September 2025 shows that US consumers brought in $26.397 trillion in income (+5.2% from one year prior), spent $21.152 trillion on goods and services (+5.0%), and, after interest payments and taxes, $1.090 trillion was left over for savings (+2.1%). The savings rate is lackluster, but not problematic in the near term.
Switching over to inflation-adjusted figures, we see that while some spending growth has been driven by relatively nondiscretionary segments such as professional and financial services and medical care, discretionary categories are beginning to perk up."
ITR Trends 10
The Trends 10 summary provides a dynamic look at the economy. Each major segment of the economy is shown in terms of where it is in the business cycle. Each phase of the business cycle (A, B, C, D) carries its own Management Objectives™ which enable firms to enhance profitability while preparing for the next phase of the business cycle.
Equipped with accurate insights from the Trends Report, your business will have the foresight to make data-driven decisions and craft strategic plans that promote business growth. By anticipating market trends and efficiently allocating resources, you can mitigate risks and secure a competitive edge!
