Economic Outlook: Modest Growth With a ‘Wild Card’
In terms of jobs, Basu expects non-residential building construction employment to expand 2.1 percent in 2013 — only slightly better than the 1-percent performance estimated for 2012. Basu also expects construction materials prices to rise a bit more rapidly in 2013 than they did in 2012, with substantially more volatility to be experienced from month to month next year.
“Despite ongoing slowdown in many of the world’s largest economies, ABC anticipates many investors will opt to invest in hard assets as a way to avoid volatility in equity and bond markets,” Basu said.
As part of the overall economy, Basu said “whether or not the nation falls off its fiscal cliff — a collection of spending cuts and tax increases that kick in at the end of the year — certain taxes likely are headed higher.”
Specifically, Basu predicted increases in marginal income tax rates to pre-Bush levels, increases in tax rates on capital gains and dividend income, and expiration of the payroll tax credit in the first quarter of 2013.
Basu’s prediction for Gross Domestic Product (GDP) growth for 2013 is between 1 and 2 percent, unless the nation falls off the fiscal cliff, which Basu would expect to cause GDP to fall between 2 and 3 percent.
“The U.S. economy is presently expanding at a 2-percent rate,” said Basu. “Even in the absence of a dive off the federal precipice, the nation will struggle to achieve 2-percent growth next year as certain tax rates rise and as federal spending growth slows and perhaps turns sharply negative.”
The Economics of Super Storm Sandy
Major reconstruction work along the East Coast in states that were affected by Hurricane Sandy could also be a market factor in 2013 across all modes, according to the American Road and Transportation Builders Association (ARTBA). Additional federal, state, and local emergency funds for rebuilding this infrastructure could be a boost as projects get underway.
For more from the ARTBA report, check the Aggregates Manager blog, “Aggregates Insider.” We will be featuring some of the state-by-state data, as well as the Water Resources Development Act and the outlook for ports and waterways construction work.
MORE FROM Articles
SUBSCRIBE & FOLLOW
- Former gravel quarry-turned-landfill transforms into nature reserve522 Views
- North Carolina grants Martin Marietta water quality certification for limestone quarry258 Views
- Vulcan-blocking bill dies in Alabama legislature251 Views
- Road restrictions may stop quarry construction in Kentucky221 Views
- Two suspects charged with arson in Jack’s Mountain Quarry case in Virginia128 Views