Total construction spending on an annual basis is expected to fall 12% this year and 4% in 2010, according to the Third Quarter U.S. Construction Briefing by IHS Global Insight’s Construction Service.
But there’s good news: Real total construction spending is expected to rebound with double-digit growth on an annual basis in 2011 and 2012. While the outlook 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 2009, climbing 2.1% quarter-on-quarter in the third quarter and 4.8% in the fourth.
Nonresidential construction remains in a slump, according to the forecast, pulled down by commercial construction which faces a 27.9% annual decline this year.
On an annual basis, total manufacturing construction spending is forecast to fall 41.5% in 2010 and another 12% in 2011 before recovering in 2012.