Construction to Increase to $1.6 Trillion in 2021, Short of Bubble High
US construction expenditures are forecast to reach $1.6 trillion in 2021, according to a report recently released by Freedonia Focus Reports.
Contractors stand to benefit from continued gains in the number of households; household incomes; and business, nonprofit organization, and government investment.
Residential building construction is projected to outpace growth in nonresidential building and nonbuilding activity, maintaining its position as the largest segment.
Construction spending as a percentage of GDP is expected to regain some of the ground lost over the 2006-2011 period. In 2021, construction expenditures are forecast to represent 6.9% of GDP, up from 6.5% in 2016 but below the 8.7% peak registered in 2006.
Residential building activity was overheated in 2006 and 2007, preventing a quick return to those historical peaks.
Among the four major geographical regions, construction spending in the South and the West is projected to slightly outpace expenditures in the Midwest and the Northeast due to faster population and GDP growth.
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