Nonresidential Building Poised for Modest Uptick (source: GlobeSt.com)

Nonresidential Building Poised for Modest Uptick

By Paul Bubny | National

Private nonresidential building is up nearly 13% for the first seven months of this year.

NEW YORK CITY—Outside the multifamily sector, commercial construction’s growth rate is a bit more modest. However, it’s leading the way when both private- and public-sector nonresidential construction are factored in, says Fitch Ratings.

Private nonresidential construction spending increased 12.9% to $187.5 billion during the first seven months of 2014 after gaining just 1.2% in 2013. After four consecutive full years of decline, public-sector spending is once again trending downward thus far this year, slipping 0.1% between January 1 and July 31.

“Continued improvement in commercial real estate fundamentals and a slight easing in bank credit lending standards will likely drive higher commercial construction activity further,” says Fitch director Robert Rulla. The ratings agency projects that private nonresidential construction spending, including office and logistics, will grow 8% in ‘14 and 6% in 2015.

In line with recent trends, Fitch expects public construction spending will remain relatively weak into next year, although street and highway spending will advance at a faster pace. This aspect of public-sector construction bucked the declining trend and grew 0.9% in ‘13 and is up 3.1% year to date.

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source: http://www.globest.com

 

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