Significant Increase for Non-Residential Construction Forecasted for 2007 February 22, 2007

Building and Construction (Non-Residential) forecasted for an increase. Building increased almost 6 percent in 2006 even after adjusting for inflation, and the pace of growth is expected to pick up a bit more this year, increasing by almost 7 percent across the nonresidential building category. Pacing the upturn is projected strong construction activity in office buildings (+9 percent), hotels (+13 percent), and hospitals and health care (+7 percent). These are some of the principal conclusions from the most recent AIA Consensus Construction Forecast, a semi-annual survey of the nation’s leading construction forecasters. In the mid-year update published last June, this panel expected nonresidential activity to increase 6.3 percent in 2006 and 6.2 percent in 2007. Current estimates are that 2006 will come in just a little weaker than was expected last summer, and that this year will be a little stronger. If these forecasts prove to be accurate, 2006–2007 would be the best two-year period for the industry since the late 1990s.

Source:  AIA

[ back]