The 2019 Dodge Construction Outlook report predicts that total U.S. construction starts for 2019 will be $808 billion, staying essentially even with the $807 billion estimated for this year. Deceleration in total construction growth is expected to continue, reflecting a mixed pattern by project type.
“Over the past three years, the expansion for the U.S. construction industry has shown deceleration in its rate of growth, a pattern that typically takes place as an expansion matures,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “After advancing 11% to 14% each year from 2012 through 2015, total construction starts climbed 7% in both 2016 and 2017, and a 3% increase is estimated for 2018. There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still healthy market fundamentals for commercial real estate and greater state financing for school construction and enhanced federal funding for public works.”
The report was released at the Dodge Data & Analytics' 80th annual Outlook Executive Conference in National Harbor, Md. AISC was a sponsor of the conference. Click here to view more.