Construction Industry Continue to Lose Momentum in 2002; Second Half Improvement Projected
Hesitant home-buyers, cautious real estate investors, the weaker fiscal standing of state and local government and a reduced demand for commercial space will pose the biggest challenges to the construction industry during the first half of 2002. But despite those issues, low interest rates and the potential support of a federal stimulus package should help construction activity improve during the second half of 2002. The result is that the value of new construction starts for all of 2002 is projected at $481.0 billion, just slightly below the $481.4 estimated for 2001.
That outlook was presented by Robert Murray, vice president of economic affairs for the Construction Information Group, a division of The McGraw-Hill Companies. Murray delivered his annual forecast to industry leaders at F.W. Dodge's Outlook 2002 Executive Conference held at the Capital Hilton in Washington, DC.