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New Construction Starts to Rise 2% in 2012, Says McGraw-Hill Construction's Outlook Midyear Update
Forecast shows improvement in housing, with modest gains for commercial building, but institutional building and public works continue to weaken
June 27, 2012 - New York, NY
McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), today released its 2012 Dodge Construction Outlook Midyear Update projections, which revise the forecasts provided last October at the firm's annual Outlook Conference in Washington DC. The Outlook Midyear Update predicts that total construction starts for the U.S. will increase 2% this year to $445 billion, up from the $434 billion reported for 2011. While slightly better than the flat performance for 2012 construction starts predicted last fall, the updated forecast still portrays an industry struggling to gain upward momentum.
"The construction industry has yet to move from a hesitant up-and-down pattern to more sustained expansion," stated Robert A. Murray, Vice President of Economic Affairs for McGraw-Hill Construction. "After plunging 23% in 2009, new construction starts edged up only 1% in 2010 and were unchanged in 2011, so the modest 2% increase predicted for 2012 is really more of the same. The backdrop for the construction industry remains the fragile U.S. economy, which continues to see slow employment growth, diminished funding from federal and state governments, and the uncertainty related to the U.S. fiscal stalemate and the European debt crisis. On the plus side, energy costs are now receding, interest rates are very low, and lending standards are beginning to ease for commercial real estate development." Given these divergent factors, the construction market this year continues to see a mix of pluses and minuses by major sector, as follows:
Copies of the report will be available on June 28th at http://analyticsstore.construction.com/index.php.
Additional reports and projections are available from McGraw-Hill Construction Research and Analytics, http://www.construction.com/market_research.
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About McGraw-Hill Construction:
McGraw-Hill Construction connects people, projects, and products across the construction industry. For more than a century, it has remained North America's leading provider of project and product information, plans and specifications, and industry news, trends, and forecasts. McGraw-Hill Construction serves more than one million customers in the global construction industry through Dodge, Sweets, Architectural Record, Engineering News-Record, GreenSource, and SNAP. To learn more, visit www.construction.com or follow @mhconstruction on Twitter.
About The McGraw-Hill Companies:
McGraw-Hill announced on September 12, 2011 its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services, and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
Kathy Malangone, Senior Director, Marketing Communications,
McGraw-Hill Construction, +1 212-904-4376, firstname.lastname@example.org