The Spiral – 66 Hudson Boulevard, a 67-story office building, was built in the Hudson Yards neighborhood of Manhattan.

As 2023 comes to a close, experts are fairly optimistic about the economic outlook for construction in 2024, but not without some words of caution.

While inflation and interest rate hikes have eased, the economy is weakening, according to construction economist Anirban Basu.

Looking into the coming year, experts are cautiously optimistic of a stronger construction market, particularly in certain sectors such as manufacturing and health care.

After posting an estimated 1% gain for 2023, the overall value of construction starts is expected to rise 7% during 2024.

As the construction industry continues to grapple with the difficulties of the last several years, some sectors have fared better than others, and experts predict there is still some time to come before these issues have been settled.

Federal Reserve needs to start cutting interest rates, but that won't happen "until some point next year,” economist Anirban Basu told an industry webinar on July 26,

Despite inflation, labor shortages and other troubles plaguing the construction industry, some sectors continue to thrive, but others face difficulties as demand for growth slows.

New York City, San Francisco lead project consultant's latest list for highest global building costs, with six US markets in the top ten of 89 surveyed.

Still-strong manufacturing sector will spur the economy in the second half of the year, said the market forecaster.