Inflation, rising interest rates and a skilled labor shortage continue as negative economic factors heading into the second quarter, said Anirban Basu, chief economist at the Associated Builders and Contractors.

With the economy so far navigating through recession risks, ENR’s Construction Industry Confidence Index shot up 11 points this quarter to a cautiously pessimistic 44 rating, with 68% of survey respondents seeing the current market as either stable or improving, up from 62.7% last quarter.

Recession fears continue to loom as the first quarter comes to a close. Inflation remains an ongoing issue, while recent failures in the banking sector pose additional threats.

Manufacturing and infrastructure construction remain strong spots for the industry.

The conversation around the recession has intensified in recent months and different industries have started taking action to prepare for the impact.

While commodity prices have begun to stabilize following the extreme volatility of the past several years, recession fears continue to mount.