ABC: 2016 should be strong year for construction
U.S. commercial and industrial construction should continue their recoveries during 2016, according to a forecast by the Associated Builders and Contractors.
A weak global economy should not affect the sector thanks to strong American consumer spending, the association said.
"As the mid-phase of the economic recovery continues, ABC forecasts growth in nonresidential construction spending of 7.4 percent next year along with growth in employment and backlog," said ABC chief economist Anirban Basu. "The mid-phase of the recovery is typically the lengthiest part and ultimately gives way to the late phase, when the economy overheats. The current recovery could end up challenging the lengthiest recovery in U.S. history, which lasted 120 months between March 1991 and March 2001.”
Most commercial construction companies should do well, Basu said.
"ABC's leading indices each suggest that 2016 will be another solid year for the typical U.S. nonresidential construction firm” he said.