Construction industry spending to fall in 2010
Commercial construction to rebound in 2011
Email Bookmark Share
PrintDue to lack of growth in the commercial construction market, total annual construction spending is expected to fall by 4% in 2010. Although the residential construction market is expected to rebound, commercial construction is going to lag behind and have a substantial negative impact on 2009 spending.
According to an IHS Global Insight forecast, even the recovery of residential construction in the second half of 2009, is not going to sustain construction spending, and therefore, construction spending wil be down about 12% in 2009.
Construction industry in 2011 and 2012
IHS's construction market research shows optimism about 2011 and 2012, expecting commercial construction to rebound with double-digit growth in those years.
Residential construction
They expect residential construction, mainly new single family home construction, to expand in the second half of 2009. This growth in new home construction will result in construction spending climbing 2.1% in the third quarter and 4.8% in the fourth, according to IHS's construction market research.
IHS expects commercial construction spending to drop by nearly 28% this year.
IHS reports that occupancy rates in commercial properties are falling and rents in commercial properties are continuing to drop.
