The Manufacturing & Construction industry is highly sensitive to changes in economic activity. When the economy expands, the industry typically experiences strong growth as businesses invest in new facilities and consumers spend more on home improvement projects.
Manufacturing & Construction industry is a large and broad sector that covers companies involved in construction and construction materials, residential and non-residential construction, and manufacturing of energy products, food and beverage, metals, paper, plastic and glass products. The industry is primarily driven by economic growth, consumer spending, government spending, business investment and housing starts.
Economic growth: The Manufacturing & Construction industry is highly sensitive to changes in economic activity. When the economy expands, the industry typically experiences strong growth as businesses invest in new facilities and consumers spend more on home improvement projects. However, during economic downturns, the industry often experiences significant declines as businesses postpone or cancel construction projects and consumers cut back on spending.
Consumer spending: Consumer spending is a major driver of demand for the Manufacturing & Construction industry. When consumers are confident and have disposable income, they often spend more on home improvement projects and new home purchases, which drives demand for industry products and services. However, when consumers are uncertain about the future or are concerned about their financial situation, they are more likely to cut back on spending, which can hurt industry revenue growth.