How will Biden’s infrastructure push affect US industries?
The Infrastructure Investment and Jobs Act (IIJA) will deliver a 2% boost to US construction activity over the next two years, about five times larger than the growth impulse to the broader economy. After construction, we find that the legislation will provide the largest boost to manufacturing and professional and business services, raising their growth between 0.2ppts and 0.3ppts on average each year, according to our simulations.
What you will learn:
- Nonresidential construction activity will benefit the most, with land transportation (highways, roads, bridges) receiving the biggest jolt, as about 40% of new spending in the IIJA will be directed towards such projects.
- Manufacturing output should benefit from a cumulative 0.5% boost over the next two years and the sector will create 10k more jobs by the end of 2023.
- The ramp-up in construction will raise demand for technically-skilled service-sector workers, such as architects, consultants, engineers, and scientists.
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