ABC Forecasts Downturn in 2009 Construction Activity

Date: 9 December 2008
Washington, D.C. – Associated Builders and Contractors (ABC) today released its 2009 economic forecast for the commercial and industrial construction industry.

While the industry experienced a mixed bag in 2008, do not expect the same story in 2009,” said ABC Chief Economist Anirban Basu.“For more than a year, economists have been discussing how weak the overall economy has been.The ongoing credit crunch began in earnest in August 2007 and the U.S. economy shrank during last year’s fourth quarter,” said Basu. “Because commercial construction typically lags the overall economy by one to two years, the weakness that has pummeled other segments of the nation’s economy has not been as apparent in commercial construction performance.

“However, that is about to change in 2009,” added Basu. “One of the most telling signs that we will see a downturn in commercial and industrial construction activity is the dramatic fall of the Architecture Billings Index (ABI), produced by the American Institute of Architects. In October, the ABI rating reached a historic low not seen since the rating system was established in 1995.

“While nonresidential construction employment was down 4.7 percent on a year-over-year basis in October, this level of job loss pales in comparison to what is likely to emerge over the next twelve months,” added Basu.

“ABC expects that the reversal in industry fortunes will be increasingly manifested in the 2009 and 2010 data.  It is worth noting that producer prices also will begin to decline more forcefully in the months ahead due to the deflation in key commodities, including copper, steel and oil. However, this will help accelerate the sector’s eventual recovery.”

Read the full story.

600450 ABC Forecasts Downturn in 2009 Construction Activity
Date: 9 December 2008

See more news about:

Others also read

We thank all our visitors, members and friends for being part of our site during 2008. We’ve loved having you here. We would like to wish you Merry Christmas and a happy New Year.
Insulation giant Saint-Gobain Isover is inviting submissions for its 2009 international architectural student competition which has prize money totalling €6,500 at stake.
On 11 December 2008 the only producer of glass packaging in Slovakia, Vetropack Nemsova, a subsidiary of Vetropack Holding of Switzerland, launched a new automated line for sorting glass cullet, worth SKK 170mn (EUR 5.61mn USD 7.51mn).
Saint-Gobain Containers shut down its second furnace Monday in the second phase of a temporary layoff at the glass plant as a result of economic pressures.
Nuova Oxidal in cooperation with Politecnico di Milano and Texs consortium is organizing a specialization course for project, furnishing and building up of temporary spaces.
As a result of the extreme devaluation of the Ukrainian hryvnia (UAH) against the US dollar, the Vetropack Group has adjusted downwards its expectations for the current 2008 financial year.

Add new comment