According to the Fourth Quarter U.S.
Construction Briefing by IHS Global Insight’s Construction Service, U.S. construction spending will be
flat in 2011, pushed higher by positive second half gains in the residential
and commercial sectors.
According to the Fourth Quarter U.S. Construction Briefing
by
IHS Global Insight’s Construction
Service, U.S. construction spending will be flat in 2011, pushed higher by
positive second half gains in the residential and commercial sectors as they
begin to move up from the historic lows of the recent past. This is after
falling 8.3 percent in 2010.
Select key findings from the fourth quarter forecast include:
Residential. In 2010, gains in the single-family
and improvement sectors will offset the continued weakness in the multi-family
segment, resulting in overall growth of 1.7 percent. Growth in residential
construction will fall to 0.4 percent in 2011 before becoming steadier in 2012
as the housing market corrects itself.
Commercial. After seeing losses of more
than 50 percent from 2008 levels, the commercial construction sector will reach
bottom in 2010 and will see significant improvement in 2011, with growth of 3.1
percent in the sector.
Infrastructure. Stimulus spending on highways and
streets will be outweighed by a drop-off in power construction spending due to
overcapacity in the power sector. This will result in a decline of 3.5
percent in 2010; these declines will continue into 2011.
The IHS Global Insight Construction
Service provides analysis, forecasts, and data on the worldwide construction
industry for building materials manufacturers, construction equipment,
engineering and services companies, real estate investment and financial
services firms, home improvement retailers and architectural firms, and the
U.S. and other governments.
For more on this forecast,
read here.
Source: IHS