U.S. Construction Looks Forward To a Flat 2011
According to the Fourth Quarter U.S. Construction Briefing by IHS Global Insight’s Construction Service, U.S. construction spending will be flat in 2011, pushed higher by positive second half gains in the residential and commercial sectors as they begin to move up from the historic lows of the recent past. This is after falling 8.3 percent in 2010.
Select key findings from the fourth quarter forecast include:Residential. In 2010, gains in the single-family and improvement sectors will offset the continued weakness in the multi-family segment, resulting in overall growth of 1.7 percent. Growth in residential construction will fall to 0.4 percent in 2011 before becoming steadier in 2012 as the housing market corrects itself.
Commercial. After seeing losses of more than 50 percent from 2008 levels, the commercial construction sector will reach bottom in 2010 and will see significant improvement in 2011, with growth of 3.1 percent in the sector.
Infrastructure. Stimulus spending on highways and streets will be outweighed by a drop-off in power construction spending due to overcapacity in the power sector. This will result in a decline of 3.5 percent in 2010; these declines will continue into 2011.
The IHS Global Insight Construction Service provides analysis, forecasts, and data on the worldwide construction industry for building materials manufacturers, construction equipment, engineering and services companies, real estate investment and financial services firms, home improvement retailers and architectural firms, and the U.S. and other governments.
For more on this forecast, read here.