As the overall economy continues to struggle, nonresidential construction spending is expected to decrease by 11% in 2009 in inflation-adjusted terms, according to the AIA Consensus Construction Forecast.
This semi-annual forecast is based on a survey of the nation’s top construction forecasters, including McGraw Hill Construction, Global Insight, Moody’s Economy.com, Reed Business Information and FMI. The purpose of the Forecast Panel is to project business conditions in the construction industry over the coming 12-18 months.
The outlook is fairly bleak across the entire nonresidential market, with no winners. Commercial projects, including office and retail projects, however, will see the most significant decreases in activity.
“As profits for businesses have fallen and the ability to get credit to finance projects has become far more difficult, construction plans have been put on hold or canceled outright in recent months,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “This is not expected to turn around anytime soon and it’s likely to get worse before it gets better.”
Click here to see the complete report from AIA.
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