FMI still sees 2014 construction growth, yet its forecast is tapered

By |  September 17, 2013

FMI forecasted growth in both residential and commercial construction for 2014 upon releasing its third-quarter construction outlook, but the management consulting and investment banking organization reined in its expectations based on recent market developments.

As part of its Q3-2013 Construction Outlook Report, FMI reduced its annual construction put-in-place predictions to $909.6 billion. That figure is down $4 billion from previous predictions.

Still, FMI expects continuous growth of 7 percent for 2014 – driven in part by residential and commercial construction.

In residential construction, FMI expects growth yet for that growth to taper off to 12 percent in 2014. FMI’s total predicted residential forecast is $379.6 billion, compared with $338.2 billion for 2013.

In commercial construction, FMI’s current forecast calls for a 5-percent increase in 2014. Although retail sales as of June 2013 were up 5.7 percent over the previous year, FMI says new brick and mortar retail space, along with commercial other construction growth, will remain slow to recover.

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