flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Outlook for construction spending improves with the upturn in the economy

Market Data

Outlook for construction spending improves with the upturn in the economy

The strongest design sector performers for the remainder of this year are expected to be health care facilities.


By AIA | July 29, 2021

Pent-up demand from the pandemic is creating a general spending surge that is helping to improve the outlook on construction spending over the next two years, according to a new report from the American Institute of Architects (AIA).

After nonresidential construction spending declined by about 2% last year, the AIA Consensus Construction Forecast Panel, in its mid-year update, is projecting that spending will decline an additional 3.9% this year, which is an improvement from the forecasted 5.7% decline reported in January. Nonresidential construction spending is expected to increase 4.6% in 2022.

The strongest design sector performers for the remainder of this year are expected to be health care facilities, up 1.4%, while a few other sectors should see only minimal declines, like retail, religious, and education. However, in 2022, virtually all the nonresidential building sectors are expected to see healthy growth, paced by lodging, as well as amusement and recreation, both of which saw steep declines during the pandemic.

“Even while momentum is developing behind most of the nonresidential building sectors, there are several potential potholes on the road to a construction recovery,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Inflation is back on the radar screen given the surge in consumer spending, as well as the growing federal debt levels. Also, the global supply chain continues to face serious challenges that persist even well after initial pandemic related disruptions have largely subsided.”

 

CCF.png

Related Stories

Market Data | Apr 16, 2019

ABC’s Construction Backlog Indicator rebounds in February

ABC's Construction Backlog Indicator expanded to 8.8 months in February 2019.

Market Data | Apr 8, 2019

Engineering, construction spending to rise 3% in 2019: FMI outlook

Top-performing segments forecast in 2019 include transportation, public safety, and education.

Market Data | Apr 1, 2019

Nonresidential spending expands again in February

Private nonresidential spending fell 0.5% for the month and is only up 0.1% on a year-over-year basis.

Market Data | Mar 22, 2019

Construction contractors regain confidence in January 2019

Expectations for sales during the coming six-month period remained especially upbeat in January.

Market Data | Mar 21, 2019

Billings moderate in February following robust New Year

AIA’s Architecture Billings Index (ABI) score for February was 50.3, down from 55.3 in January.

Market Data | Mar 19, 2019

ABC’s Construction Backlog Indicator declines sharply in January 2019

The Construction Backlog Indicator contracted to 8.1 months during January 2019.

Market Data | Mar 15, 2019

2019 starts off with expansion in nonresidential spending

At a seasonally adjusted annualized rate, nonresidential spending totaled $762.5 billion for the month.

Market Data | Mar 14, 2019

Construction input prices rise for first time since October

Of the 11 construction subcategories, seven experienced price declines for the month.

Market Data | Mar 6, 2019

Global hotel construction pipeline hits record high at 2018 year-end

There are a record-high 6,352 hotel projects and 1.17 million rooms currently under construction worldwide.

Market Data | Feb 28, 2019

U.S. economic growth softens in final quarter of 2018

Year-over-year GDP growth was 3.1%, while average growth for 2018 was 2.9%.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021