RALEIGH, NC — FMI, management consultants and investment bankers to the building and construction industry, on June 11 announced that its Second Quarter 2008 Construction Outlook, a quarterly construction market forecast, is now available.
The Construction Outlook indicates the outlook for 2009 has been revised down slightly. Recently released economic indicators are somewhat mixed, as housing, credit tightening, consumer spending and inflation continue to hinder the economy. While the general economy begins to stabilize somewhat, nonresidential construction is expected to falter late in 2008 and into 2009.
“The Fed continues cutting rates to stimulate the economy, but inflation is becoming a threat and a pause is likely,” said Heather Jones, construction economist for FMI’s Research Services.
Total construction in 2008 and 2009 will be down 4% and 1% based upon large decreases in residential construction that will not be offset by gains in nonresidential and non-building construction. The decline in 2009 will be driven by a decrease in nonresidential construction for the first time since 2003.
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