b'ECONOMIC FORECASTFORECAST 2026RISING COSTS, SLUGGISH CONSUMERSBy: Phillip M. PerryA modest uptick in economic growth, beneficial legislation from Washington and lower interest rates will help the construction industry boost profitability in2026.Theincreasingcostsofdoingbusiness,though,combinedwith uncertainty and consumer malaise will reduce the number of business initiatives that make it off the drawing board. Companies need to double down on smart tactics to boost productivity in the face of a decelerating population.T he construction industry can look forward to anations goods and services, is the most commonly gradually improving, if challenging, operatingutilized measure of economic growth. Real GDP environment in 2026. The US economy issubtracts the effects of inflation).holding up admirably well despite a major trade shockHigher profitscaused by tariffs, said Bernard Yaros Jr., Lead U.S.The nations economic growth depends largely on Economist at Oxford Economics (oxfordeconomics. the launch of new business initiatives. Unfortunately, com). We look for an acceleration in growth incompaniesareholdingbackforanumberof 2026 as stimulus from the One Big Beautiful Billreasons. Interest rates, while declining, are still at gets underway. the highest levels since 2022. Costs for materials Oxford Economics expects real GDP to grow byand supplies are increasing. There is uncertainty 2% in 2026, up a bit from the 1.7% expected whenabout the nations future trade policy. Lower and 2025 numbers are finally tallied. Both years, amongmiddle income consumers, nervous about inflation, the most sluggish growth environments of the pastare tapped out and closing their wallets. Against decade, are underperforming the 2.8% increasesuch headwinds, a host of otherwise attractive of 2024.projects can look less promising.(Gross Domestic Product, the total value of theOne might also expect business profitability to suffer. 8 www.mrca.orgMidwest Roofer'