Spending Surge Impacts Future Construction Spending

Pent-up demand from the pandemic is creating a general spending surge that is helping to improve the outlook on construction spending over the next two years, according to a new report from the American Institute of Architects (AIA).

After nonresidential construction spending declined by about two percent last year, the AIA Consensus Construction Forecast Panel, in its mid-year update, is projecting that spending will decline an additional 3.9 percent this year, which is an improvement from the forecasted 5.7 percent decline reported in January. Nonresidential construction spending is expected to increase 4.6 percent in 2022.