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No recovery for nonresidential building this year; growth expected in 2012

Post Time:Jul 28,2011Classify:Industry NewsView:85

The American Institute of Architectsis projecting that nonresidential construction spending will fall 5.6 percent this year, followed by a modest recovery of 6.4 percent in 2012. AIA Chief Economist Kermit Baker attributes the decline to an uneven economic recovery, hesitancy on the part of lenders to finance construction projects, the weak financial position of governments at all levels, and rising costs of key building material commodities.

Commercial facilities—office, retail, and hotel—are expected to see a more significant declineof 6.5 percent this year, but also a stronger recovery of almost 12 percent next year. The traditionally more stable institutional sector is expected to fall just over 3 percent this year, and then offset this decline with a 4 percent increase in 2012, according to Baker.

Read the full AIA forecast

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Source: http://www.glassmagazine.com/news-item/commercial/no-recovery-nonresidential-building-year-growth-expected-2012-118566Author:

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