b'16 Economic UpdateFORECAST2026Rising Costs, Sluggish ConsumersDedicated to keeping its members at the forefront in their industryAmodestuptickineconomicgrowth,beneficiallegislationfrom Washington and lower interest rates will help the construction industry boostprofitabilityin2026.Theincreasingcostsofdoingbusiness, though, combined with uncertainty and consumer malaise will reduce the number of business initiatives that make it off the drawing board.By Phillip M. PerryCompanies need to double down on smart tactics to boost productivity in the face of a decelerating population.T he construction industry can looktallied. Both years, among the most sluggish forward to a gradually improving, ifgrowth environments of the past decade, are challenging, operating environmentunderperforming the 2.8% increase of 2024. in 2026. The US economy is holding up admirably well despite a major trade shock(Gross Domestic Product, the total value of caused by tariffs, said Bernard Yaros Jr.,the nations goods and services, is the most Lead U.S. Economist at Oxford Economicscommonly utilized measure of economic growth. (oxfordeconomics.com). We look for anReal GDP subtracts the effects of inflation).acceleration in growth in 2026 as stimulus from the One Big Beautiful Bill gets underway. Higher profitsThe nations economic growth depends Oxford Economics expects real GDP tolargely on the launch of new business grow by 2% in 2026, up a bit from the 1.7%initiatives. Unfortunately, companies are expected when 2025 numbers are finallyholding back for a number of reasons. The InsulatorJanuary 2026'