Breaking News in the Construction Sector
- Ed Sullivan
- Dec 18, 2025
- 2 min read
Updated: Jan 7
Market Update
Economic Overview
Due to a 43-day federal government shutdown, data on the economy's performance was delayed. Recent government data releases now cover October and November. The latest U.S. inflation and labor market data indicate a slowing economy.
Labor Market Insights
Recent data from the Bureau of Labor Statistics (BLS) show continued softening in the labor market. In October, there was a loss of 105,000 jobs. This was followed by a modest gain of 64,000 jobs in November. The unemployment rate has increased to 4.6%, the highest level in seven years.
Wages grew by 3.5%, which is significantly below the average recorded in 2024 and the first half of 2025. This slowdown reflects reductions in federal government employment, heightened uncertainty, and a weakening economy.
Inflation Trends
Inflation has improved significantly. The Consumer Price Index (CPI) for October and November showed inflation rising by 2.7% over the past year. Core inflation, which excludes volatile food and energy costs, was recorded at 2.6% annualized. Notably, there is no clear evidence of tariff-induced inflation.
Implications for the Construction Industry
These reports collectively reflect a slowing economy. Weaker job markets and slowing wage gains lead to less demand for goods and services. This, in turn, forces prices to moderate. If these conditions persist, the pace of future Federal Reserve rate cuts could accelerate.
The combination of more aggressive monetary policy easing and lower inflation suggests declines in long-term rates. Long-term rates are crucial as they drive mortgage and commercial loan rates. If these trends continue, private construction could perform better than expected in 2026.
Future Outlook
As we look ahead, it is essential to consider how these economic indicators will affect the construction sector. The interplay between labor market conditions and inflation will be critical.
Navigating Market Uncertainties
For construction professionals, understanding these dynamics is vital. The potential for lower long-term interest rates could create opportunities for new projects. However, it is essential to remain cautious. The economic landscape is still uncertain.
Strategic Planning
In this environment, strategic planning becomes even more critical. Professionals in the construction and cement industries must stay informed about economic forecasts. This knowledge will enable them to make informed decisions.
Conclusion
In summary, the current economic data suggests a slowing economy with potential implications for the construction sector. By staying informed and adapting to changing conditions, professionals can navigate these uncertainties effectively.
About The Sullivan Report
The Sullivan Report delivers subscription-based economic forecasts, news, and market updates tailored to the cement, concrete, construction, and building materials industries. Its flagship publication, the Cement & Construction Outlook, is released three times a year - and features 5-year forecast projections, expert analysis, and actionable insights to support informed decision-making and long-term strategic planning amid an evolving economic landscape
Guided by award-winning economist Ed Sullivan, The Sullivan Report also offers keynote presentations and customized forecasting services for organizations and regions seeking deeper, data-driven market intelligence. For more information, message us here, visit *TheSullivanReport.com, or email us at info@thesullivanreport.com.
