ACEC Monthly Economic Update – March 2022

ACEC Releases Monthly Economic Update for the Engineering and Design Industry

Engineering and design revenues hit all-time high while inflation outlook worsens
 

Washington, DC – Recently, the American Council of Engineering Companies (ACEC) released a new monthly video economic update. Each month, ACEC Vice President of Private Market Resources Erin McLaughlin analyzes the latest industry data and provides insights for the engineering and design industry.

Here are the toplines from this month’s update:

• Total design and construction spending was up more than 8% this January, compared to the same time last year. The category remains driven by private residential spending (+13.4%), along with private non-residential (+7.3%). Source: U.S. Census Bureau
• Engineering and design revenues reached $100 billion last quarter, an all-time high, and marked the sixth straight month of growth following the pandemic dip.  Source: U.S. Census Bureau

• Inflation is anticipated to remain higher than previously predicted, according to a new National Association for Business Economics survey. Thirty percent of respondents named monetary policy missteps as the greatest downside risk.

  At the same time, 77% of respondents suggested a wage spiral, the economic term for price increases due to higher wages, is either already occurring or will be a major risk in 2022. Source: National Association for Business Economics Survey

• During a report to Congress this month, Federal Reserve Chairman Jerome Powell said he would propose a quarter-percentage-point interest rate increase at the upcoming Fed meetings, an amount less than analysts anticipated. Powell acknowledged difficulties coming out of the pandemic, saying the Fed would avoid “adding uncertainty to what is already and extraordinarily challenging and uncertain moment.” Source: U.S. Senate Banking Committee Hearing

The video series is one of ACEC’s resources for media and members, which also includes ACEC’s popular Private Industry Briefs. The briefs provide analysis on five key markets: Commercial and Real Estate; Intermodal and Logistics; Energy and Utilities; Health Care and Science+Technology; and K-12 & Higher Education.

In April, the ACEC private markets team will hold a symposium discussing the health care, science and technology markets in Boston, Mass.

Learn more about ACEC’s full slate of private market offerings here.

 

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