Associated Builders and Contractors (ABC) Chief Economist Anirban Basu, American Institute of Architects (AIA) Chief Economist Kermit Baker and National Association of Home Builders (NAHB) Chief Economist Robert Dietz predicted continued growth for the construction industry in 2017 during a joint economic forecast this week (download the PDF slidedeck; watch the archived presentation).
Each economist discussed leading, present, and future indicators for sector performance, including ABC’s Construction Backlog Indicator (CBI), AIA’s latest Architecture Billings Index (ABI) and Construction Consensus Forecast, and the NAHB/Wells Fargo Housing Market Index (HMI).
The economists’ comments can be read below.
Anirban Basu, ABC Chief Economist: "Nonresidential construction spending growth will continue into the next year with an estimated increase in the range of 3 to 4 percent. Growth will continue to be led by privately financed projects, with commercial construction continuing to lead the way. Energy-related construction will become less of a drag in 2017, while public spending will continue to be lackluster."
Robert Dietz, NAHB Chief Economist: "Our forecast shows single-family production expanding by more than 10 percent in 2016, and the robust multifamily sector leveling off. Historically low mortgage interest rates and favorable demographics should keep the housing market moving forward at a gradual pace, but residential construction growth will be constrained by shortages of labor and lots and rising regulatory costs."
Kermit Baker, AIA Chief Economist: "Revenue at architecture firms continues to grow, so prospects for the construction industry remain solid over the next 12 to 18 months. Given current demographic trends, the single-family residential and the institutional building sectors have the greatest potential for further expansion at present."
Related Stories
Market Data | Jun 17, 2020
6 must reads for the AEC industry today: June 17, 2020
Santa Fe becomes the second city in the world to achieve LEED v4.1 and the megacity is dead.
Market Data | Jun 16, 2020
7 must reads for the AEC industry today: June 16, 2020
Tottenham Hotspur Stadium has its own brewery and workers want policy changes before they return to offices.
Market Data | Jun 15, 2020
International Code Council offers guidance on building re-occupancy for reopening economies
Companies and building managers can access free resources at the Code Council’s Coronavirus Response Center.
Market Data | Jun 12, 2020
6 must reads for the AEC industry today: June 12, 2020
How will museums change in the face of COVID-19 and the patriarch of The Boldt Company dies.
Market Data | Jun 11, 2020
5 must reads for the AEC industry today: June 11, 2020
Istanbul opens largest base-isolated hospital in the world and AIA issues tools for reducing risk of COVID-19 transmission in buildings.
Market Data | Jun 10, 2020
6 must reads for the AEC industry today: June 10, 2020
Singapore's newest residential district and CannonDesign unveils COVID Shield.
Market Data | Jun 9, 2020
ABC’s Construction Backlog Indicator inches higher in May; Contractor confidence continues to rebound
Nonresidential construction backlog is down 0.8 months compared to May 2019 and declined year over year in every industry.
Market Data | Jun 9, 2020
6 must reads for the AEC industry today: June 9, 2020
OSHA safety inspections fall 84% and the office isn't dead.
Market Data | Jun 8, 2020
Construction jobs rise by 464,000 jobs but remain 596,000 below recent peak
Gains in may reflect temporary support from paycheck protection program loans and easing of construction restrictions, but hobbled economy and tight state and local budgets risk future job losses.
Market Data | Jun 5, 2020
7 must reads for the AEC industry today: June 5, 2020
The world's first carbon-fiber reinforced concrete building and what will college be like in the fall?