Nonresidential construction spending could slow down in the coming year in the wake of a turbulent global economy and uncertainty around the upcoming U.S. presidential election. That's the conclusion one can reach from the American Institute of Architect's latest semi-annual Consensus Construction Forecast.
The survey of the country’s leading construction-market forecasters projects spending growth of 5.8% for nonresidential building in 2016 and of 5.6% for the same category in 2017.
Demand for hotels, offices, and amusement and recreation spaces will spur construction spending this year, the report finds. Here's how AIA chief economist Kermit Baker described things:
Healthy job growth, strong consumer confidence, and low interest rates are several positive factors in the economy, which will allow some of the pent-up demand from the last downturn to go forward. But at the same time, the slowing in the overall economy could extend to the construction industry a bit, with the biggest drop-off expected in the industrial facility sector over the next year and a half.
For more on the trend, plus charts, visit Architect.