Research Institute Market Briefing (hosted by MIC)-Research Institute Market Briefing (hosted by MIC) Slides

Research Institute Market Briefing (hosted by MIC) Slides

Pdf Summary

The April 2025 Market Intelligence Briefing highlights key trends in the U.S. economy and the architecture/engineering (A/E) industry.<br /><br />Economically, U.S. GDP in Q4 2024 was solid but below expectations. Job growth is slowing, and unemployment has risen modestly, with the labor force participation rate at 62.5% in March 2025, still below pre-pandemic levels. Consumer spending has flattened in 2025 so far. Inflation, although reduced from its 2022 peak of 9.1%, remains above target at 2.4% as of March 2025. Interest rate hikes have softened but not fully controlled inflation; wholesale prices and infrastructure costs remain a concern. Mortgage rates have recently declined after prior increases.<br /><br />In the A/E sector, Q4 2024 revenues reached record nominal highs at $124.3 billion, marking a 4.2% rise from Q3 and 11.7% year-over-year growth. However, construction spending growth has slowed to 0.7% month-over-month and 2.9% year-over-year as of February 2025. Private construction rose 2%, while public construction increased 6%. Residential construction remains somewhat resilient with 1.6% YoY growth despite higher mortgage rates; nonresidential growth slowed to 3.9% YoY.<br /><br />Top growth markets include water supply (+13.8%), amusement/recreation (+11.9%), religious (+10.8%), and sewage/waste disposal (+9.5%). Conversely, commercial construction declined 5%, highways/street down 1.9%, and healthcare by 0.8%.<br /><br />Sentiment about the U.S. economy and A/E sector hit new highs in Q1 2025, with strong backlogs but ongoing labor shortages—nearly 10% of industry positions remain unfilled. While growth is expected to moderate in 2025, sector sentiment continues to improve across multiple industries.<br /><br />Overall, the briefing paints a picture of steady but cautious economic and industry conditions, shaped by inflation challenges, labor market shifts, and evolving demand across construction sectors.

Keywords

US economy 2025

GDP Q4 2024

inflation rate 2025

labor force participation

mortgage rates decline

architecture engineering industry

construction spending growth

private vs public construction

top growth markets A/E

labor shortages A/E sector