Reed Forecasts Construction Spending Increase for 2014
Reed Construction Data has a better outlook for construction spending than the U.S. Census Bureau's recently released 2013 numbers. According to the Bureau, nonresidential building construction slipped 3.1 percent to $304.6 billion in December after increasing 0.9 percent in November. Total public construction spending dropped 2.3 percent in December after sinking 1.4 percent in November. For the year, public construction spending decreased 2.8 percent, the Bureau reports.
Reed forecasts, however, that overall economic growth will advance at a moderate pace this year and next. Construction will pick up as builders move to bring projects delayed by inclement weather and government instability back on schedule. Nonresidential building construction will slowly improve throughout this year and beyond as the economy strengthens. Total construction spending is forecast to increase 8.8 percent in 2014 and 11.1 percent in 2015 as nonresidential and heavy engineering construction improve and residential construction continues to expand, Reed reports.