Trump 2.0 Short-Term Good for Construction but Brings Labour and Housing Risks, Say Economists

November 13, 2024

That’s according to Oxford Economics, which assessed the prospects for the global construction industry ahead of Trump’s administration taking over the reins of the US government in January.

Its economists forecast that US fiscal expansion in the form of tax cuts, interest rate cuts, and higher federal spending in areas like defence would likely support privately funded construction activity in the near-term. Oxford Economics then expects fewer rate cuts in 2026 amid higher debt and inflation expectations. Higher rates could spill into other economies and over the longer term weigh on investment and therefore construction activity, it warned.

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