Construction Spending Surges Amid Recession Fears

Construction spending surged by 13.9% in December, driven by both private and public sectors. While private construction rose for residential projects but declined for nonresidential ones, public construction experienced a 21.3% increase. Despite this, economists predict a 39% probability of a US recession within the next year, with an estimated 1% economic growth this year. The construction industry grapples with late vendor payments, with 100% of firms experiencing late payments compared to 87% of firms across other industries.