The AIA Consensus Construction Forecast projects annual growth in the 3.5 percent to 4.0 percent range for the remainder of 2017 as well as for 2018, with a slower growing commercial/industrial market, and an institutional sector facing several challenges. While some slowdown in the commercial sector was anticipated for 2017 and 2018, it was expected to be offset by acceleration in the institutional sector. However, year-to date growth in spending for institutional buildings is at only 3%, well below expectations when the year began.
“Despite billings at architecture firms performing quite well this year, the larger construction industry is facing a range of issues,” says AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The somewhat weaker outlook is driven by several factors, some dealing with the broader U.S. economy, some dealing with general construction industry fundamentals, and some dealing with weakness in specific construction sectors.”
Learn more about the AIA Consensus Construction Forecast.
Related Stories
Market Data | Aug 15, 2018
National asking rents for office space rise again
The rise in rental rates marks the 21st consecutive quarterly increase.
Market Data | Aug 13, 2018
First Half 2018 commercial and multifamily construction starts show mixed performance across top metropolitan areas
Gains reported in five of the top ten markets.
Market Data | Aug 10, 2018
Construction material prices inch down in July
Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.
Market Data | Aug 9, 2018
Projections reveal nonresidential construction spending to grow
AIA releases latest Consensus Construction Forecast.
Market Data | Aug 7, 2018
New supply's impact illustrated in Yardi Matrix national self storage report for July
The metro with the most units under construction and planned as a percent of existing inventory in mid-July was Nashville, Tenn.
Market Data | Aug 3, 2018
U.S. multifamily rents reach new heights in July
Favorable economic conditions produce a sunny summer for the apartment sector.
Market Data | Aug 2, 2018
Nonresidential construction spending dips in June
“The hope is that June’s construction spending setback is merely a statistical aberration,” said ABC Chief Economist Anirban Basu.
Market Data | Aug 1, 2018
U.S. hotel construction pipeline continues moderate growth year-over-year
The hotel construction pipeline has been growing moderately and incrementally each quarter.
Market Data | Jul 30, 2018
Nonresidential fixed investment surges in second quarter
Nonresidential fixed investment represented an especially important element of second quarter strength in the advance estimate.
Market Data | Jul 11, 2018
Construction material prices increase steadily in June
June represents the latest month associated with rapidly rising construction input prices.