2019 construction spending is expected to continue rising, up 4.8 percent, although at a slower pace than 2018’s 6.5 percent growth, according to Atradius’s annual Market Monitor for the global construction industry. As the U.S. economic expansion slows down, commercial construction growth should decline slightly this year due to higher office vacancies.
Residential construction is expected to grow modestly on the back of wage growth, low unemployment and low inventories, while higher interest rates have an adverse effect. Nonresidential construction is projected to continue improving, largely supported by the $305 billion Fixing America’s Surface Transportation Act.
Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.