Nonresidential building spending to grow through 2019, but cautious outlook for 2020

by Marcy Marro | 16 January 2019 12:00 am

Nonresidential construction spending on buildings is projected to grow by 4.4 percent through 2019, according to a new consensus forecast from The American Institute of Architects[1] (AIA).

Healthy gains in the industrial and institutional building sectors have bolstered growth projections for 2019; however, the AIA Consensus Construction Forecast Panel—consisting of leading economic forecasters—is suggesting that a broader economic downturn may be materializing over the next 12-24 months. Learn more about this Consensus Construction Forecast online[2].

“Though the economy has been performing very well recently, trends in business confidence scores are red flags that suggest a slowdown is likely for 2020,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “These signals may be temporary responses to negative short-term conditions, but historically they have preceded a more widespread downturn.”

[3]Market Segment Consensus Growth Forecasts

2019

2020

Overall nonresidential building

4.4%

2.4%

Commercial/industrial total

3.5%

0.6%

Hotels

3.9%

-0.7%

Office space

5.1%

1.2%

Retail

1.9%

0.4%

Industrial total

4.8%

2.7%

Institutional total

4.8%

2.9%

Public safety

6.8%

4.9%

Healthcare facilities

4.0%

3.6%

Education

5.5%

4.1%

Amusement / recreation

4.4%

0.6%

Religious

-2.6%

-1.2%

Endnotes:
  1. The American Institute of Architects: http://www.aia.org
  2. online: http://icm-tracking.meltwater.com/link.php?DynEngagement=true&H=btYXC68syxmDVppbhVzFoYHdeMNV9070xvOlf%2FNdDQ0wXj6aidRhm9%2FYx%2FPhldMQkxBiI1CjuY0QsGJiqRp%2FAGGWoftCqfxW5iAdPFfSZJZRMNidGjjyB7u95WheIgSy&G=0&R=http%3A%2F%2Finfo.aia.org%2Faiarchitect%2F2019%2Fcharts%2Fjan2019%2Fccf_012519.html&I=20190116144014.000000aa3f8e%40mail6-114-ussnn1&X=MHwxMDQ2NzU4OjVjM2Y0MjI2NjU5MzU0MzBhOTFkYzc5ZDs%3D&S=NY1knGkl5ge-x7QSDLt3dLMTig8QD4tNQmv8wwkR10Y
  3. :

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