Despite this year’s initial sluggishness, Branch said expected interest rate cuts in the second half of 2024 should push some of these projects in the planning queue through to break ground, leading to a rising trend in construction activity as the year progresses.
But until those cuts provide some relief, construction activity could remain somewhat hamstrung. The American Institute of Architects’ Architecture Billings Index, which tracks architectural design activity and leads actual construction by nine to 12 months, signaled continued softness as business conditions remained on a decline, said Kermit Baker, AIA chief economist.
