Building Products Industry Market Update September 2024

This report provides an update on the building products industry as of September 2024, detailing economic and industry trends. The U.S. economy is showing signs of a soft landing with a year-over-year GDP growth of 3.0% in Q2 2024. Despite a rising unemployment rate, construction employment has increased, particularly in residential sectors. The report outlines the impact of declining interest rates on housing starts, which have remained resilient despite challenges. It notes that while single-family housing starts are expected to gain momentum, multi-family starts face challenges due to increased supply. Non-residential construction spending remains robust, driven by fiscal stimulus and demand in sectors like data centers and infrastructure. The report also discusses the slowing growth rate in non-residential spending compared to the previous year but emphasizes that total spending is above pre-pandemic levels. The Dodge Momentum Index and Architecture Billings Index indicate future growth potential in non-residential projects.