Moody's latest Building Materials - US Outlook Report indicates that the 12-18 month outlook for the US building materials sector is positive. It forecasts operating income will grow about 15% in that time period and revenue will grow about 10% in 2018 and 6% in 2019. All construction end markets, public and private, are solid with strong underlying demand.
Highlights of the report include:
- Private residential construction will continue to produce solid growth metrics, though at a slower rate than in recent years.
- Private nonresidential construction spending will continue to grow moderately, at about 4% in both 2018 and 2019.
- Public construction spending will increase as funding provided by the FAST Act, and numerous state and local transportation initiatives, will translate into increased product demand in 2018 and 2019.
- US tax overhaul will enhance cash flow during construction expansion.
To download the full report, click here.