Debt Ceiling Breach Would Have Significant Impact on Construction Starts Outlook
While there are several risks facing the U.S. economy and the construction sector in 2023, the most pressing concern is the ongoing battle over raising the debt ceiling, which could have significant repercussions for government spending and overall economic stability.
In the second quarter edition of the Construction Market Forecasting Service (CMFS) released in May 2023, it was assumed that the U.S. economy would barely avoid recession in 2023 thanks to the strength in the labor market and the debt ceiling would be raised before the X date (the date at which the government could no longer pay its bills), which as of writing is projected to be in early June.