Tuesday, November 12, 2013

2014 Construction Starts Should Increase 9%

                         McGraw-Hill’s Vice President of Economic Affairs Robert Murray announced that the Dodge Construction Outlook for 2014 predicts construction starts across the American economy could rise about 9% to a total of $555 billion, led by a solid housing market and rising commercial construction. The Dodge Outlook prediction is based on “more orderly” federal budget deliberations in Congress, and a predicted overall U. S. economy growing at between 2.5% and 3% in 2014.
                    The construction economy has been sluggish in 2013, mostly because of 2013’s contraction in overall U. S. economic growth to 1.6%, compared to 2.8% growth in 2012. Construction starts in 2012 were up 10%, but fell back to only a predicted 5% this year. Apartment construction leads all sectors with 36% growth in 2012, 19% growth in 2013, and a projected 11% growth to a total of $53.1 billion in 2014.
                     Single family home construction is expected to accelerate to $201.1 billion next year. Commercial construction starts increased 14% in 2012, 15% in 2013 and an expected rise of 17% to $72.7 billion in 2014. Nevertheless, it will be a long time before the construction industry sees 2005’s peak levels of activity, according to Murray.
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