McGraw-Hill Construction today released its 2012 Dodge Construction Outlook Midyear Update projections, which revise the forecasts provided last October at the firm’s annual Outlook Conference in Washington DC. The Outlook Midyear Update predicts that total construction starts for the U.S. will increase 2% this year to $445 billion, up from the $434 billion reported for 2011. While slightly better than the flat performance for 2012 construction starts predicted last fall, the updated forecast still portrays an industry struggling to gain upward momentum.
The report notes:
- Commercial building in 2012 will grow 10%, following the 12% gain in 2011. Warehouses and hotels will see the largest percentage increases, joined this year by a moderate gain for stores while office construction sees more privately financed projects but less government office buildings.
- The institutional building market in 2012 will fall an additional 10%, after sliding 11% in 2011. The tough fiscal environment for states and localities continues to dampen school construction, and the uncertain economic environment is restraining healthcare facilities.