July 28, 2016
So-called “national and international vulnerabilities” will exert pressure on the construction industry and spending, according to the American Institute of Architects’ Consensus Forecast Panel. Though 2016 has gotten off to a solid start, the AIA is predicting activity to moderate.
In 2015, commercial and industrial construction sectors grew by 20% or more. In comparison, the AIA is forecasting a 6% construction increase in 2016 and 2017. Commercial construction sectors are projected to be the strongest performers this year, with institutional categories backing off.
The AIA attributes the slowdown to economic issues, such as a weak manufacturing sector and global issues, including Brexit, and economic slowdowns in Russia, China and Brazil. The upcoming presidential election is also creating uncertainty.
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