WASHINGTON, D.C. – Inclement weather and a weakness in the institutional sector are the reasons the American Institute of Architect’s lowered construction spending projections for the remainder of the year.
In their semi-annual publication Consensus Construction Forecast, the AIA reported construction spending will see a 4.9 percent increase in 2014 – down from the previous estimate of 5.8 percent, with next year’s projection holding at 8 percent.
“The institutional market has been a drag on the overall recovery for the design and construction industry for the last few years,” said AIA Chief Economist, Kermit Baker.
Although Baker said there are increasing demands for construction loans, particularly for commercial projects, lending standards at financial institutions “fall well short” of the demand.
The purpose of the Consensus Construction Forecast Panel is to project business conditions in the construction industry over the coming 12 to 18 months.
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