What the construction boom means for the US economy
New construction in the US is growing, but it’s not as fast as in the past, as construction companies are finding it harder to get financing.
“Construction companies have been putting the brakes on spending, saying it’s going to take a while to get funding,” said Richard Tumulty, an economist at the Boston Consulting Group.
“Now, I think the industry’s getting back on track.”
The Federal Reserve and other agencies have been pushing the Federal Reserve to raise rates, in order to push up demand and to keep inflation under control.
The Fed raised rates in December, raising the benchmark overnight interest rate by 0.25% to an all-time low of 0.2%.
The central bank’s monetary policy committee held its first meeting since January 3, when it approved a $85 billion bond-buying program.
On Wednesday, the Fed will decide if it will keep interest rates near zero and if it needs to raise its benchmark rate by another 0.75%.
Fed Chair Janet Yellen, a former investment banker who has worked in the private sector, is expected to make a recommendation on the issue on Thursday.
If the Fed keeps rates low, that would mean lower interest rates for the private markets.
But if it raises rates to zero and raises the benchmark rate to 2% – the Fed’s target rate – the central bank could potentially have more room to borrow.
In addition to lower interest payments for consumers, it would mean more spending for businesses.
The construction boom has also helped boost the US’s economy by boosting demand for construction materials and equipment.
Since last year, the construction industry has added more than $300 billion to the US gross domestic product, according to a report from the National Association of Home Builders.
And as the construction sector gets ready to open up, it is likely to have a big impact on the rest of the economy.
More:The Federal Housing Finance Agency said last month that the housing market will be in better shape next year than in the first three quarters of 2019.
A recent survey from brokerage firm CBRE said that demand for new construction was strong, with more than 2.5 million homes on the market.
With the number of homes on sale at a record high, the housing industry will be a big contributor to the overall economy, the survey said.
Meanwhile, there is a growing sense of uncertainty in the economy as companies are facing the threat of the debt ceiling.
President Donald Trump has vowed to raise the debt limit, and Congress will likely have to agree to extend the debt-limit deadline by another year to avoid a government shutdown.
That would mean the end of a government that has been in place for nearly two decades and that has served the American people with unparalleled service, including food stamp benefits, Medicaid, Social Security and the Children’s Health Insurance Program.
At the same time, companies are also having a tough time finding financing for projects that require them to lay off workers.
For example, General Electric has laid off about a quarter of its workforce.
Construction companies are struggling to find finance for the construction of new housing and office buildings as the market remains relatively weak.
Last month, the Federal Housing Administration reported that construction spending jumped to a record $3.9 billion in the third quarter, up 6% from the previous quarter.
There is no end in sight for the debt crisis, which has forced the government to borrow more money and has led to a drop in home values.