McGraw-Hill Construction released its 2012 Dodge Construction Outlook, which predicts that construction starts in 2012 will remain flat at $412 billion. This follows the 4 percent decline expected for 2011.
New construction starts dropped 24% in 2009 and leveled off in 2010. .In 2012, the top-line numbers are not expected to show much change, but McGraw Hill forecasts that some sectors in the construction industry will show gains, such as housing and commercial buildings.
The 2012 Dodge Construction Outlook includes the following forecast:
- Single-family housing climbing 10 % in dollars and 7% in the number of units
- Multifamily housing increasing 18 % in dollars and 17 % in units
- Commercial buildings increasing 8 % in dollars
- Institutional buildings falling 2%
- Manufacturing buildings increasing 4% in dollars
- Public works construction falling 5%
- Electric utility construction dropping 24%
The American Institute of Architects’ Architecture Billings Index (ABI), a leading economic indicator of construction activity, increased in October with an ABI rating of 49.4 compared with 46.9 in September.