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The American Institute of Architects (AIA) announced the results of its semi-annual “Consensus Construction Forecast,” which found non-residential construction spending will continue to increase more than eight percent this year with an additional 6.7 percent gain in 2017.
“While rising interest rates could pose a challenge to the U.S. economy, lower energy prices, improved employment figures, and an enacted federal budget for 2016 are all factoring into a very favorable outlook for the construction industry,” said AIA chief economist, Kermit Baker. “After several years of challenging economic circumstances, the institutional project sector is finally on very solid footing.”
The breakdown of the different sector gains for 2016 includes:
- commercial/industrial – 9.9 percent;
- hotels – 14.8 percent;
- office space – 12.8 percent;
- industrial facilities – 11.9 percent;
- retail – 7.5 percent;
- institutional – 6.7 percent;
- amusement/recreation – 11.2 percent;
- education – 6.5 percent;
- religious – 2.6 percent; and
- public safety – 1.8 percent.
The sector gains for 2017 are expected to be:
- commercial/industrial – 7.5 percent;
- hotels – 7.8 percent;
- office space – 8.8 percent;
- industrial facilities – 5.3 percent;
- retail – 5.6 percent;
- institutional – 6.7 percent;
- amusement/recreation – 7.7 percent;
- education – 6.6 percent;
- religious – four percent; and
- public safety – 4.2 percent.
