Construction Activity Expected to Soften in 2008
Weakness in the overall U.S. economy is translating to a tempered forecast for the nonresidential construction market, and spending is expected to increase by a modest 0.7 percent in 2008 in inflation adjusted terms, according to a new report.
Weakness in the overall U.S. economy is translating to a tempered forecast for the nonresidential construction market, and spending is expected to increase by a modest 0.7 percent in 2008 in inflation adjusted terms, according to a new report.
The twice annual
AIA Consensus Construction Forecast Panel predicts a modest 1.3 percent decline in the commercial categories, but a reasonably healthy 4.2 percent gain in institutional facilities.
Led by demand for institutional projects, the growth in 2008 is expected to be at a slower pace than recent years, with commercial projects likely to see the most decrease, according to the report. There is also expected to be continued volatility in the costs of building materials.
The forecast does not expect improvement in 2009; the consensus is for a small decline of 0.9 percent in nonresidential activity for next year. Again, the commercial sectors are expected to fare worse than the institutional categories.
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