Real total construction spending is expected to rebound with double-digit growth on an annual basis in 2011 and 2012, according to the IHS Global Insight's Third Quarter US Construction Briefing.
The outlook for non-residential construction is weak for this year and next, but residential construction is expected to expand in the second half of 2009, climbing 2.1% quarter-on-quarter in the third quarter and 4.8% in the fourth.
Non-residential construction remains in a slump, according to the forecast, pulled down by commercial construction, which faces a 27.9% annual decline this year.
Manufacturing construction
The pace of growth, pushed up by a surge in spending on pipelines and refineries, has slowed and going forward is likely to plummet. On an annual basis, total manufacturing construction spending is forecast to fall 41.5% in 2010 and another 12% in 2011, before recovering in 2012.
Healthcare
Total spending on US hospitals and other healthcare buildings continues to increase steadily.
Infrastructure
Excluding construction in the power sector, which will decline, infrastructure construction is forecast to rise 6.4% in 2010 and 4.5% in 2011. Most of the US$82 billion in infrastructure investment included in the $787 billion stimulus package will be allocated over the next two years.
Transportation
Spending on transportation infrastructure will see moderate increases in 2010. The stimulus package includes $13 billion for rail projects.
