It does, however, provide hope for 2011.
The semi-annual report—compiled from data provided by McGraw-Hill Construction, Global Insight, Portland Cement Association, MoodysEconomy.com, and other sources—predicts that nonresidential construction activity will fall another 13.4 percent in inflation-adjusted dollars this year, which is notably better than the 20 percent drop-off in 2009. In the report, nonresidential construction refers to the commercial, industrial, and institutional sectors.
Commercial and industrial are projected to be weaker this year than in 2009, with declines of about 20 percent. Office construction spending will dip 18.6 percent, and hotel construction spending will plummet 23.5 percent, according to the study.
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Construction Spending Slump to Persist in 2010
Despite noting that “the long-awaited recovery seems to be under way,” the AIA's newly released Consensus Construction Forecast offers little reason for optimism in 2010.