Record-high inflation and supply chain bottlenecks have been limiting the growth of the basic materials industry. However, increasing infrastructure-related activities, such as repairing roads, bridges, and ports with the reopening of the economy, should drive the growth of companies in this space.
President Biden’s $1 trillion infrastructure spending bill is also expected to boost the basic materials industry’s growth. According to the U.S. Census Bureau, construction spending increased 7.9% year-over-year to $1,463.2 billion during the first 11 months of 2021.
