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However, Democratic Sen. Joe Manchin recently said that he could not back his party’s Build Back Better Act, making the plan’s prospects uncertain. With concerns that certain spending bill provisions could exacerbate already high inflation, Manchin has long been a holdout on the legislation. Following this decision, Goldman Sachs (NYSE:GS) cut its U.S. growth forecast. Furthermore, the chief economist of Goldman Sachs and the team stated that “We had already expected a negative fiscal impulse for 2022 as a result of the fading support from COVID-relief legislation enacted in 2020 and 2021, and without BBB enactment, this fiscal impulse will become somewhat more negative than we had expected.”
Because Manchin’s decision could eliminate the hoped-for $2 trillion spending to build highways, roads, bridges, and other infrastructures, we think it could be wise to avoid fundamentally weak infrastructure stocks Nucor Corporation (NYSE:NUE), Vulcan Materials Company (NYSE:VMC), Martin Marietta Materials, Inc. (NYSE:MLM) and Eagle Materials Inc . (EXP).
