Washington, D.C. -- Spending on nonresidential building construction is expected to increase almost 4% this year and more than 2% in 2020, according to a new consensus forecast from The American Institute of Architects (AIA).
Continued volatility has not impacted construction spending as the projections by the AIA Consensus Construction Forecast Panel—consisting of leading economic forecasters—are largely unchanged from where they stood at the beginning of the year. While some individual construction sectors are projected to see declines over the next 18 months, the consensus projects overall building construction activity will continue to expand.
“Outlook showing nonresidential construction activity continuing to expand reflects the underlying strength of the economy, even this late in the business cycle,” said Kermit Baker, Ph.D., AIA chief economist. “However, there are several potential threats to continued healthy growth in the broader economy as well as in the construction industry that would point to slower economic growth in future quarters.”
Growth in the public safety sector is projected highest at 8.2% in 2019 and 5.9% in 2020. Second highest is education with 6.1% and 4.4% growth in 2019 and 2020, followed by office space at 6.9% and 2.2%.
For more information, visit www.aia.org..