February 8, 2017
ConstructConnect Releases Quarterly Forecast Report Indicating Greatest Improvement with Residential and Engineering
CINCINNATI – In ConstructConnect’s Q1 2017 forecast report, grand total 2016 starts are upgraded to +6.4% year-on-year from +6.2% as was estimated in Q4 of last year and the projection for the 2017 grand total has also been revised upwards, showing a further improvement over 2016.
The forecast which combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics econometric expertise – reflects a sense of optimism overall for 2017:
- 2017 is looking brighter at +7.4% year-on-year compared with +6.8% year-on-year as previously projected.
- 2017 over 2016 residential starts have been shifted up to +9.5% from +8.9% and civil/engineering to +8.0% from +5.1%.
- But the forecast of non-residential building starts has been cut to +4.9% year-on-year from +5.7% year-on-year.
- Uncertainty about prospects for capital spending in the health care field will have an impact on institutional construction starts.
- An era of super-low interest rates and truly inexpensive construction costs is likely coming to an end.
- Canadian construction starts will begin to recover in 2017 after a dismal performance in 2016.
“ConstructConnect’s construction forecast out to 2021 is fairly optimistic even while being somewhat cautious concerning the overall impact of the new President’s economic initiatives,” said ConstructConnect Chief Economist, Alex Carrick. “This includes the possibility of an accelerated infrastructure spending program.”
According to the report, business sentiment is more positive due to the anticipation of potential tax cuts, large-scale deregulation as well as the likelihood of major infrastructure stimulus. Factored with the projected rise in the GDP of 2.3% in 2017 and 2.5% in 2018, the robust labor market should influence consumer spending, which is currently near 3% year-on-year.
“Economies depend on being able to move goods and people faster and cheaper. In such a context, new and repair infrastructure work can readily be justified, particularly if it leads to productivity enhancements,” said Carrick.
For more information about ConstructConnect, visit constructconnect.com.
ConstructConnect is a leading provider of construction information and technology solutions in North America. Through the combination of its four legacy brands (iSqFt, Construction Market Data, BidClerk and Construction Data), ConstructConnect brings project participants together with the most complete, accurate and actionable construction data and tools to drive success in national, regional and local markets. Its collaborative network empowers the construction industry to be more successful with access to relevant information through easy to use technology. For more information, visit constructconnect.com.