Because of the collapse in nonresidential construction and despite an expected recovery of residential building in the second half of 2009, total construction spending on an annual basis is expected to fall 12 percent this year and 4 percent in 2010, according to a recent study.
The report, Third Quarter U.S. Construction Briefing conducted by Lexington-based IHS Global Insight’s Construction Service, found construction spending is expected to rebound with double-digit growth on an annual basis in 2011 and 2012.
The mixed outlook for the construction market mirrors the outlook for the broad economy. While the forecast for nonresidential construction is weak for this year and next, residential construction – driven by a single-family market verging on recovery – is expected to expand in the second half of this year, climbing 2.1 percent quarter-on-quarter in the third quarter and 4.8 percent in the fourth, according to the study.
Nonresidential construction remains in a slump, according to the forecast, pulled down by commercial construction which faces a 27.9 percent annual decline this year.





