NEWSLETTER Q3 2025 Industrial and Construction Services
Q3 2025 ECONOMIC REFLECTION Persistent high interest rates and financing costs continue to create headwinds, particularly for residential and private investment. Bond yields are higher than they were leading up to the September rate cut, signaling how little the Fed controls rates in an environment of high tariffs and federal deficits. Materials and labor costs remain volatile, keeping pressure on project budgets and timelines. Uncertainty driven by tariffs and the volatile trade environment has slowed decision making and caused some project timelines to extend Growth is slowing but remains positive, with federal infrastructure spending and resilient nonresidential construction helping offset weakness in housing.
ECONOMIC DATA TO WATCH
2024 YTD 2025
2020 2021
2022
2023
(1)
CPI-U
258.8 271.0
292.7
299.0
315.5 324.0
Annual % Change Rate of Inflation
1.2% 4.7% 8.0%
4.1%
3.4% 2.9%
Fed Funds Rate - Annual Average (2)
2.16% 0.36% 0.08% 1.68% 5.03% 4.33%
90-Day SOFR
0.08% 0.05% 1.39%
2.44% 4.69% 4.31%
(1)
10-Yr. Treasury - Avg. Yield 0.90% 1.52%
2.84% 3.88% 4.40% 4.20%
Unemployment
8.1%% 5.3% 3.6%
3.7% 4.3% 4.2%
(1) U.S. Dept. of Labor Bureau of Labor Statistics (2) New York Federal Reserve
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