Thursday, July 22, 2010

Spending on Commercial and Nonresidential Construction to Fall More Than 20%

According to a recent report by the American Institute of Architects (AIA), spending on commercial and other nonresidential construction is likely to fall more than 20% this year -- significantly more than forecasters predicted six months ago -- with hotel and office construction down by more than 43% and 29%, respectively, according to the AIA midyear look at construction.

Even with a modest U.S. economic recovery under way, overall nonresidential spending is expected to drop 20.3% for 2010 -- and nearly 30% for private commercial development -- before edging up 3.1% in 2011, according to the AIA’s semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters. Manufacturing facilities will see a 20% spending decline. Even dollars allocated to new government and other institutional buildings, previously a pillar of strength for builders, will likely fall 12%.

Read the report.

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