Construction sector sentiment is improving, with firms anticipating higher activity as credit conditions gradually ease and pipeline visibility strengthens. Greater clarity around trade policy and input costs is enabling organizations to focus more on execution than defense.
Risks persist, including tariff-related inflation, renewed supply chain fragility, and ongoing skilled labor shortages. While overall labor pressures have moderated, regional constraints continue to sustain cost pressures, and the global construction pipeline is softening, with office and industrial activity remaining subdued in several regions.
Key Trends and Challenges:
- Global supply chain pressures have re-intensified, exceeding long-run benchmarks amid trade and geopolitical risks.
- Labor constraints have eased overall, but skilled-worker shortages continue to elevate costs.
- Office construction is declining globally, while industrial activity remains subdued in the Americas and EMEA.
