Construction: Gradual growth continues in 2015: +6/7% expected for the construction industry

7/1/2015 - Report
ic_blogtagEconomic OutlookConstructionEmploymentGrowthSector Risk
The U.S. construction industry is viewed as a key indicator of the strength of the American economy, consumer confidence, and unemployment trends. As the rate of unemployment declines, investment in both residential and commercial U.S. construction tends to increase, signaling improved consumer confidence and the spending it brings.

This spending pumps money into the economy and creates demand for consumer goods and services, which eventually leads to investment in capacity increases in the commercial sector such as manufacturing facilities, office space, and retail establishments. As personal wealth and consumer confidence grows, residents' demand for housing increases, which leads to growth in the residential construction sector.

We are now seven years removed from the start of The Great Recession in 2008 and although we have yet to see sustained momentum in GDP growth, which has ranged between +2.4% and +2.9% for four straight quarters through March 2015, the unemployment rate reached a seven year low of 5.3% in June 2015.

This gradual economic recovery has provided the residential construction industry with +9% growth in 2015 and an expected growth of +8�9% in 2016. Non-residential construction grew +7.1% through H1 2015 but is expected to only grow +5% for the full year, as contraction in power-related, water supply, and public safety projects continue.

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Construction: Gradual growth continues in 2015: +6/7% expected for the construction industry - Report