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Financial conditions still point to weaker construction

Commercial construction surveys have shown improving activity in recent months, despite high interest rates and a slowing economy. Our Financial Conditions Indices (FCIs) suggest that might be because market sentiment and credit conditions have, so far, seen a relatively modest deterioration given the size of the interest rate hikes. But, as the tightening cycle works through, we think commercial construction output will contract in 2023 H2.

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