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
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.
