b'THE OFFICIAL NFBA MAGAZINECONSTRUCTION FORECAST 2025 A WELCOME ECONOMIC REBOUNDHealthyeconomicgrowthwillhelpbolsterprofitsforconstructionand manufacturing operations in 2025. Lower interest rates, a decline in inflation, a rebound in housing activity, and governmental infrastructure support will generate tailwinds.However,businessesmustbewaresupplychaindisruptionsresulting from geopolitical tensions, as well as the growing threat of tariffs.ECONOMIC UPDATE 2025ByPhillip M. PerryC learing skies with a chance of showers. Thegrowth pattern in recent years suggests construction industry and manufacturers canthe nation is on a glide path to a so-called look forward to a gradually improving operatingsoft landing, avoiding a recession after environment in 2025, thanks to lower interest rates,a lengthy inflationary binge (see adjacent moderating inflation, and steady if unspectacularchart).growthinthenationsoveralleconomicactivity.Despite its positive nature, the GDP figure for 2025 We look for real GDP growth of 1.9% in 2025, saidis slightly lower than the 2.6% anticipated when 2024 Bernard Yaros Jr., Lead U.S. Economist at Oxfordnumbers are finally tallied. Thats because the nation is Economics (oxfordeconomics.com). (Gross Domesticin a so-called late-stage expansion, characterized by Product, the total value of the nations goods and services,a tendency to slow down while maintaining sufficient is the most commonly utilized measure of economicforce to invigorate commercial operations. growth. Real GDP subtracts the effects of inflation). Fair windsThe good news is that the 1.9% boost is not far off what economists peg as the nations natural growthIn 2025, construction operations and manufacturers rateone that supports business activity and maintainscan look forward to a decline in both interest rates and full employment. And reduced volatility in the GDPinflationtwo bugbears that have drained profits in recent times. We anticipate a federal funds interest continued on page: 1716 / FRAME BUILDER - VOL5 6'