This is a post from Jim Haughey's blog that covers the US construction industry.

Jim Haughey is the Chief Economist for Reed Construction Data and has over thirty years experience as a business economist, including twenty years monitoring the construction market. He has a Ph.D. degree in economics from the University of Michigan and has previously taught at the University of Michigan, Ohio University, Michigan State University and the University of Massachusetts.

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Construction Industry Forecasts

Notes from Jim Haughey - May 02, 2011

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Construction spending increases 1.4% in March
Jim Haughey, RCD Chief Economist

The Reed Construction Data forecast was changed only slightly due to the March report.  The forecasts for multi family, highway and water/sewer were lowered slightly. In spite of a recent pickup in permits, apartment construction has been slow to revive. Projects that rely heavily on federal funding and site development have been weaker than earlier expected because of both Congressional spending cuts and the delayed start of the overall construction recovery.  Partially offsetting these downgrades, both healthcare and education construction spending have not weakened as much as expected. Facility manager may be taking advantage of depressed construction costs while they last.

Construction spending is now projected to drop 2.3% in 2011 and then gain 13.7% in 2012. Total spending by end of 2012 will be back to the early 2009 level which was seven quarters after the long decline in construction spending began.  The complete forecast will be posted on the web site later this week.

 


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Read Other Recent Jim Haughey Posts

08/15 - Contractor Survey: Work backlog rises in 2nd Q but may fall in the summer
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07/29 - Sour economic growth report threatens construction recovery
07/27 - Worry about the deficit not the debt limit
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07/27 - Worry about the deficit not the debt limit
07/19 - Housing starts rebound.6% in June after two weak months
07/18 - Congress prepares to postpone resolving the deficit crisis assuring an extended period of subpar eco
07/12 - House Transportation Committee proposes to keep federal highway funding at fuel tax receipt level
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07/08 - Contractors cut 9,000 jobs in June
07/05 - The cost and frustration of selling a home contributes to the delayed housing recovery
07/05 - May construction spending down 0.6%; recovery still on hold
07/01 - FAA stops works on federally funded runway and control tower projects
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06/16 - Mays’ 3.5% gain in housing starts does not signal a housing recovery immediately ahead
06/15 - Cautious spending threatens to delay construction recovery
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