Non-residential construction spending expected to rise on strong gains in manufacturing and retail
Spending on building construction is expected to rise just over 9% this year and another 6% in 2023, according to a new report from the American Institute of Architects (AIA).
While the outlook for the economy as a whole has become more uncertain, the outlook for construction spending has improved since the start of the year. The outlook from the AIA Consensus Construction Forecast Panel, in its mid-year update, is more optimistic than expected at the start of the year, mainly due to extremely strong gains in the manufacturing and construction category. surprising strength of retail facilities. The industrial market is expected to accelerate the recovery in building construction this year and next. At the same time, the institutional sector should begin its recovery this year and accelerate its transition to 2023.
“The construction industry is not without its own set of challenges,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Supply chain disruptions, coupled with general inflation, have driven construction inputs up nearly 15% over the past year. However, despite the challenges in the economy and the he construction industry, the outlook for the non-residential construction market looks promising for this year and next.
See interactive consensus building forecasts >