National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. Construction Sector Heads for Slowdown
The construction sector’s confidence in its growth prospects ebbed recently, said consulting firm Rider Levitt Bucknall in its Quarterly Cost Report for North America. The third-quarter report reflects data current as of July 1.
RLB’s Construction Industry Confidence Index is currently 51, reflecting a drop of seven points from Q2, and 19 points year over year. However, the rating is still above 50, which is considered the threshold for negative sentiment regarding industry growth.
“While we expect that construction will face a downturn in the next year, this doesn’t necessarily mean that the construction industry is in trouble,” said Julian Anderson, president of RLB North America. “It does mean a slowdown over the next 12 to 18 months, which may seem like a recession after this frenetic pace of the last few years.”
Construction starts in June were estimated at an annualized rate of $1.287 trillion, down 2.1% Y-O-Y.
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
- ◦Development
